M7 - Self employment income and CYB

Question 1

CYB meaning?

Answer 1

Current Year Basis

Question 2

CYB Rule

Answer 2

If a 12-month accounting period ends within the tax year, the profit for that period can be used for the tax year’s self assessment tax return

Question 3

can profits be taxed twice in self-assessment for sole traders?

Answer 3

Yes, they can.

Relief can be gained

Question 4

how do you calculate basis period for a third tax year where the accounting period is longer than 12 months?

Answer 4

we use the 12 months to the end of the accounting period that ended during the tax year

Question 5

Only two things to consider regarding the taxation of a sole trader after cessation of trade?

Answer 5

1. date of cessation
2. effect on the basis periods

Question 6

what happens with SBA allowance during a cessation of trade?

Answer 6

SBA allowance ceases on date of cessation of building’s use for trade.

The SBA allowance is time apportioned