Trading income

Question 1

what period is a trader assessed on

Answer 1

profits for the period ending in the tax year

Question 2

what is the commencement of the first tax year for a trader

Answer 2

start of trading until 5th April

Question 3

what is the second year tax rules for a trader if there IS an accounting period that ends in the second year

Answer 3

if it is less than 12 months, you tax the profits of the first 12 months

if it is more than or equal to 12 months you tax the profits to A/CS date

Question 4

what is the second year tax rules for a trader if there ISN’T an accounting period that ends in the second year

Answer 4

Tax profits from 06 April - 05 April

Question 5

what is loss relief against total income of

Answer 5

the tax year in which relief was suffered
and or
the preceding tax year

Question 6

what are the caps of loss relief

Answer 6

50,000
or
25% of total income

Question 7

what are he 3 types of relief

Answer 7

loss relief against total income

carry forward relief

early trad loss relief

Question 8

when is early trade loss available

Answer 8

in the first 4 years of trade

Question 9

if you work for the company you are selling shares in what relief do you get

Answer 9

entrepreneurs relief

Question 10

what tax rate is entrepreneurs relief

Answer 10

10%

Question 11

how to qualify for entrepreneurs relief

Answer 11

if its the individuals company where they own at least 5%, the company is trading and the shareholder is an officer or employee, this must be the case for a minimum of 2 years