N
nkure
Guest
Have a friend that is in need of help. She has been running dance classes for children on a small basis since 2003 and earning a small amount of money but since 2007 this has increased. She has put off setting up as sole trader due to lack of knowledge and basically putting in on the long finger. She now finds herself in a position where she needs to sort this out but doesnt know where to start. If she now registers as a sole trader will she have to declare all her earnings since 2003 or could she take it from 2007? If she says that she started up since 2007 could the revenue look for her bank account and see that she has earned small amount of moeny since 2003?? Will she be liable for penalties? She hasn't even kept all her expense receipts and doesn't evebn know how much she has earned cause some went into her personal current account, some into a joint account, some just spend directly on rent for the hall. She is in a state cause she can't see the wood from the trees and is terrified that she may have a tax liability that she cannot pay. She has not been evading tax deliberatly as the classes were started on a trial basis and this has all snowballed out of control. What tax does she have to pay on her earnings?
Any advice??
Any advice??