Chapter 7 - 1.2 - Commencement of Trade Flashcards
1
Q
When a sole trader begins to trade, what is the first tax year in which the trader will be taxed on trading income?
A
The tax year in which the trade starts
2
Q
When are the tax adjusted profits apportioned from and to?
A
From the date the business starts trading to the end of the tax year
3
Q
What happens if a trade starts close to the start of the next tax year? (and how close do these dates need to be?)
A
Between 1 and 5 April, the trade is treated as if it started in the following year
4
Q
How should time apportionment be made?
A
To the nearest month
5
Q
A
