Tax computation.

jamesarowe

Self employed market trader has the following profits;
Year ended 30/06/12 - £30,000.
Year ended 30/06/13 - £28,000.

I calculate his trading income for the tax year 12/13 as £28,500.

01/04/12 - 30/06/12 £7,500 (30000/12x3)
01/07/12 - 30/03/13 £21,000 (28000/12x9)

But the Osborne PTX workbook has £30,000. Is this an error in the book or am I getting it wrong?

Any advice or ell would be much appreciated.

Nps

Hello,

Sole trader profits are calculated with respect to the traders end of period, not the end of the tax year. So your 12/13 profits will be those of the period which ended in the tax year 12/13, hence those in the period ending 30/6/12.

jamesarowe

Hi nps1976,

Thank you for your quick response, that rings a bell now!! Much appreciated.