Tax Year Basis

Question 1

Tax Year Basis

What is the Default Method of Calculating Taxable Trade Profits?

Answer 1

The Cash Basis.

For Sole Traders and Partnerships

Question 2

Tax Year Basis

The ‘Tax Year’ Basis is Where:

Answer 2

Profits are Assessed on an Arising Basis.

From 2024/25 Onwards.

Question 3

Tax Year Basis

When are Small Apportionments to Profit Not Required?

Answer 3

Where an Accounting Period End Date is Between 31 March and 4 April.

Treated as Equivalent to 5 April

Question 4

Tax Year Basis

When Would a Tax Return Include Provisional Figures?

Answer 4

Where a Trader’s Accounting Period End Date Does Not Correspond to the Tax Year.

Question 5

Tax Year Basis

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

Answer 5

An Amendment 12 Months From the Normal Filing Deadline.

Question 6

Tax Year Basis

How are Transitional Profits Taxed?

Answer 6

Over a 5 Year Period Beginning 2023/24.

Question 7

Tax Year Basis

What Must Happen When Trade Ceases Prior to Transitional Profits Being Settled?

Answer 7

The Balance is Taxed in the Year of Cessation.