Sole trader Basis period

PatsyC

Can someone help with my query please-I have taken on a client whose accounting period is October-November. Trading started 2013. The previous accountants filed the self assessment as follows after taking advice from HMRC:-

Year 1 Tax year 2013/14 Zero profit Nov 13 to 5/4/14
Year 2 Tax year 2014/15 12 months figures from the accounting period 1/11/13 to 31/10/14

I have the accounts for the year 1/11/14 to 31/10/15
I am unsure how to proceed now for tax year 2015/16, help would be appreciated.
Thank you.

MarieNoelle

The 12 months to 31/10/15 fall into the tax year 2015-16, so the profits for the year ended 31/10/15 are to be reported on his 15-16 SATR.

PatsyC

Thank you, a colleague had said that I had to align to the tax year and pro rata everything so I was confused. Presumably then I would continue to report in the same way in the future because HMRC are still getting their tax paid?

MarieNoelle

You are correct. Only the first year of trading follows different rules (and year of cessation).

PatsyC

Thank you so much for your help