CH5 - Tax year basis

Question 1

ASSESSABLE PROFITS

what are tax year basis

define tax year it applies

Answer 1

From 2024/25 the profits to be assessed in a tax year will be those that arise in the tax year.

on a business starts to trade in 2023/24, the tax year basis will apply from 2023/24.

Question 2

Tax year basis

How does provisional figures works
under ‘Tax Year Basis’

when it applies| what is deadline for amendment| what if too low prov.

Answer 2

• applies if an accounting date does not correspond with the tax year
• prov.figures should be amended within normal deadline for ammending tax return (12mts from 31/01 following the tax year)
• if provisional figures too low additioanl tax will due along with interest for late paid tax