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Sole trader Basis period

PatsyCPatsyC Just JoinedRegistered Posts: 27
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.

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,432
    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.
    mwb
  • PatsyCPatsyC Just Joined Registered Posts: 27
    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?
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,432
    You are correct. Only the first year of trading follows different rules (and year of cessation).
  • PatsyCPatsyC Just Joined Registered Posts: 27
    Thank you so much for your help =)
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