HELP BTC Basis Periods

rebecca

Hi everyone I am really struggling with basis periods can anyone help please. :confused1:

rebecca

This particular question

He commenced trading on 1 may 08 but has not prepared any accounts. Samantha has completed the accounts for the period ended 31 july 08 and yr ended 31 july 08.

Adjusted trading profits before deducting capital allownces.
period ended 31 july 08 £27055
year ended 31 july 09 £30645

Capital allowances are for the 3 months ending 31 july 08 £14957
are year ending 21 july 09 £11416

Any help appreciated this question is part of kaplan book pg 454 exam paper section 1.

Thank you

umerali2003

HELLO

Just follow these simple steps when ever you are dealing with basis period

For the 1st year its a simple calculation from comencing date to next 5th of april
For the 2nd year ( keep these points in your mind )

is there any accounting period ending in 2nd financial year ? yes/no
if no basis period runs from
6th apr to 5 april next year
if yes then u have 2 see
how long is that period
less then 12 m
exact 12 m
greater then 12 m

if less then 12
the basis period is the is 1st 12 months of the trade
if exact 12 m or greater then 12 m
the basis period is the 12 m to the accounting date ending in year two

OVER LAP PROFIT
once u have done with your caluclation ....... then look for those periods which have been calculated twice those are yours overlap profits

I hope so this will help . Just try a question by remembering those key points These key points really helped me when i was dealing with basis period last year plus there was a nice explanation in one of the books either it was ftc kaplan or BPP i cant remeber exactly but they used the diagram which makes it more easier to deal with basis period

lucy1988

HI,

How are you studying for BTC because we cant use the exam papers and i am really struggling. I am still getting confused with section 1 and 2 of the exam paper. I have only got exam papers out of the back of my Osbourne book which arent very good.

Thanks

sollyuk

Pratice the Key Techniques questions at the back (Kaplan) , the mock exams and the specimen paper.

It works for me

lucy1988

I have got the osbourne books and there not very good, where do you get the specimen exam paper from?

hanapospis

Hi guys,

I am really struggling with this and do not understand how to do it. Can anyone help me out?

He commenced trading on 1st January 2007

Profits:
Period ended 30 June 2007 - 27055
Period ended 30 June 2008 - 31496
Period ended 30 June 2009 - 30047

If I am trying to do the basic period

2006/2007 - 01/01/07-05/04/07 - (from the commencing date to the 05/04)
2007/2008 - 01/01/07-31/12/07 - (There is an accounting period ending in the 2nd financial year, less then 12 months (30/06/07 - so the basis period is first 12 months of trading)
2008/2009 - 01/07/07-30/06/08
2009/2010 - 01/07/08 - 30/06/09

My basic periods are one year behind the financial year... for financial year 2008/2009 I am taxing 2007/2008

So confused!!!

Where am I making the mistake?

Gem7321

It depends on the date that the accounting period ends, in this case the period ends in 30 June 2008 which is in between 6 April 2008 and 5 April 2009. If your year end was 30 April 2008 it would still be 2008/09 and if it was 31 March 2009 it would still be 2008/09.