Chapter 4 - 1.1 - Steps to Tax a Sole Trader Flashcards
1
Q
What is the first step?
A
Adjust profits for the accounting period
2
Q
What is the second step?
A
Deduct capital allowances for that accounting period
3
Q
What do you get after step two?
A
Tax adjusted trading profit for the accounting period
4
Q
What is the third step?
A
Apply the tax year basis (tax the profits arising in the tax year)
