Business tax chapter 4 Flashcards
1
Q
HMRC taxes sole traders in the fiscal year in which the accounting period ends - this is known as the current year basis. The fiscal year runs from the 6th of April to the 5th of April. If a trader has their year end set at the 31st of December, which fiscal year will these profits be taxed in? What is the basis period?
A
2019/20
The basis period is 1st January to 31st December.
