Basis of assessment (opening)

Question 1

Year 1: things to identify

Answer 1

• Date of commencement
• Which tax year does this fall into?
• How many months until the end of next tax year? e.g. 5
• Length of accounting period? e.g. 11
• Apportion 1st year profits over above e.g. 5/11*profits

Question 2

Year 2:

Answer 2

• Which accounting period ends in the second tax year?
• How many months is it?
• Tax 1st 12 months: This may be from last period plus remainder from this one.