Assessable Trading Income

Question 1

Where does a tax year run?

Answer 1

From 6 April to 5 April, but most business do not have periods of account ending on 5 April

Question 2

How to find link between a period of account of a business and tax year?

Answer 2

Applying the basis of assessment rules

Question 3

What happens from 2024/25<

Answer 3

New tax-year basis applies

Question 4

What are the new tax year basis rules?

Answer 4

No tax advantage when it comes to the choice of accounting date

Question 5

If business does not have a 5 April or 31 March year end?

Answer 5

THe tax adjusted profits need to be apportioned to each tax year

Question 6

When an accounting date is 31 March or 5 April?

Answer 6

No need to apportion the profits

Question 7

What is 2023/24?

Answer 7

A transistional year between old current year basis and new tax year basis rules and special transistional rules apply to work out the profits to be taxed