Basis Periods

anniebabe

Hi Guys
Does anyone have any top tips on basis periods - been looking at this a few days now - thought I had understood it - but looking at it again - its just not making sense now
Thanks

Diddy Mau

Hi Annie,

I'm having the same problem. I have the exam end of this month, and I feel like nothing is sinking in....especially this.
I am going over it now, so I will let you know if I think I've figured this out. Probably tomorrow lol
Fingers crossed

anniebabe

Okie Dokie Diddy Mau

I have ended up drawing a date line - its the 2nd tax year that seems to be confusing me.
My exam isnt for 7 weeks.
Its got to click soon - surely gulp

pirate

sort of remember all of this from a few years ago. It takes a bit to get your head around but try these

http://forums.aat.org.uk/showthread.php?27466-Basis-Periods&p=201441#post201441


http://forums.aat.org.uk/showthread.php?27467-Basis-period-help-please&highlight=basis+periods

http://forums.aat.org.uk/showthread.php?22772-Basis-periods&highlight=basis+periods

HTH

anniebabe

thanks for those link - will have a look now.

Diddy Mau

For Anniebabe.

I have these notes condensed down, just need to get my head around them and remember:

1st tax year, start of trade until 5 april. Profits may need to be approtioned.

2nd tax year,
3 options
1. No period of accounts in 2nd tax year, basis period 6 april to 5 april in 2nd year
2. Period of accounts in 2nd tax year, less than 12 months, Basis period start of trade for 12 months
3. Period of accounts in 2nd tax year, more than 12 months, Basis period is 12 months to the accounting date ending in year 2.

3rd tax year
12 months ending on the accounting date in the 3rd tax year

4th tax year etc...
Normal current year basis

Hopefully
1, this helps
2, it's right:huh:

anniebabe

Hello,
thanks for the reply, I am still working at this today, hopefully the penny will drop soon.

MarieNoelle

Thanks Diddy Mau, just what i needed before my BTAX exam on Monday! :thumbup1: