Tax Year Basis

Question 1

Assessable Profits

The Tax Year Basis is Where:

Answer 1

Profits are Assessed on an Arising Basis.

From 2024/25 Onwards.

Question 2

Assessable Profits

When are Small Apportionments to Profit Not Required?

Answer 2

If an Accounting Date is Between 31 March and 4 April.

Treated as Equivalent to 5 April

Question 3

Assessable Profits

When Does Trading Commence?

Answer 3

The Date Main Activities Start.

Question 4

Provisional Figures

When Might Provisional Figures in a Tax Return be Required?

Answer 4

Where an Accounting Period Does Not Correspond to the Tax Year.

Question 5

Provisional Figures

What Should Follow Submission of a Tax Return Including Provisional Figures?

Answer 5

An Amendment 12 Months From the Normal Filing Deadline.

Question 6

Provisional Figures

What Happens if Actual Figures are Higher Than Expected?

Answer 6

Interest is Payable on Any Tax Paid Late.

Question 7

Transitional Profits

Transitional Rules Apply to Traders That:

Answer 7

• Commenced Prior to 2023/24;
• Don’t Have a 31 March Year End.

Question 8

Transitional Profits

How are Transitional Profits Taxed?

Answer 8

Over a 5 Year Period Beginning in 2023/24.

Question 9

Transitional Profits

What Happens When a Trading is Ceased Prior to Transitional Profits Being Settled?

Answer 9

The Balance is Taxed in Year of Cessation.

Question 10

Transitional Profits

Transition Profits are Used to Determine:

Answer 10

• The Level of Personal Allowance;
• Relevant Earnings for Pension Purposes.