Basis Periods - help please!
Finchy01
Registered Posts: 12 New contributor 🐸
Hi All,
Think I'm having a mental block, but just need clarification!
A sole trader client of mine has an accounting period from 1st July to 30th June. He started trading years ago (1997 I recall) so I believe the whole First year/Second and Third years trading rules would have been implemented at the time.
Therefore, for future years am I right in thinking we declare on his self assessment accounting period 01st July to 30th June as per accounts figures. Eg; 01.07.09-30.06.10 was taxed in 10/11 tax return, therefore 01.07.10-30.06.11 will be taxed in 11/12 tax return? It seems strange that the tax year is upto 5th April and we will only be declaring profit/loss to 30th June the previous year??!
Would the tax man be happy with this??
Think I'm having a mental block, but just need clarification!
A sole trader client of mine has an accounting period from 1st July to 30th June. He started trading years ago (1997 I recall) so I believe the whole First year/Second and Third years trading rules would have been implemented at the time.
Therefore, for future years am I right in thinking we declare on his self assessment accounting period 01st July to 30th June as per accounts figures. Eg; 01.07.09-30.06.10 was taxed in 10/11 tax return, therefore 01.07.10-30.06.11 will be taxed in 11/12 tax return? It seems strange that the tax year is upto 5th April and we will only be declaring profit/loss to 30th June the previous year??!
Would the tax man be happy with this??
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Comments
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its normal, look at http://www.hmrc.gov.uk/helpsheets/hs222.pdf re periods, check if there is any overlap relief to carry fwd.0
