help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / John started in business as a sole trader on 1 January 2017 and elected to draw up accounts to 31st December, each year

John started in business as a sole trader on 1 January 2017 and elected to draw up accounts to 31st December, each year

Accounting

John started in business as a sole trader on 1 January 2017 and elected to draw up accounts to 31st December, each year. What basis period should you use to calculate his taxable profit for 2017/2018?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

  • For 2016/17 its basis period will be 1st January 2017 - 5th April 2017, because the first basis period always ends on the fiscal year end.
  • For 2017/18 its basis period will be 1st January 2017 - 31st December 2017, because as the first accounting year is 12 months long, the basis period ends on the same date as the accounting year.
  • For 2018/19 its basis period will be 1st January 2019 - 31st December 2019. The profits made in the period 1st January 2017 - 5th April 2017 will be taxed both in 2016/17 and 2017/18.

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)