HELP BTC Basis Periods

rebecca Registered Posts: 8 New contributor 🐸
Hi everyone I am really struggling with basis periods can anyone help please. :confused1:


  • rebecca
    rebecca Registered Posts: 8 New contributor 🐸
    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
    umerali2003 Registered Posts: 400 Dedicated contributor 🦉

    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

    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
    lucy1988 Registered Posts: 74 Regular contributor ⭐

    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.

  • sollyuk
    sollyuk Registered Posts: 2 New contributor 🐸
    Pratice the Key Techniques questions at the back (Kaplan) , the mock exams and the specimen paper.

    It works for me
  • lucy1988
    lucy1988 Registered Posts: 74 Regular contributor ⭐
    I have got the osbourne books and there not very good, where do you get the specimen exam paper from?
  • hanapospis
    hanapospis Registered Posts: 111 Dedicated contributor 🦉
    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

    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
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
    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.
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