Commencement & Cessation

yop

Registered User
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Hi,
I'm trying to find a definitive answer/example on this but I cant find one! :(

I started a business as a sole trader in July 2010. I ended it on July 11th this year.

I am trying to figure out how to break up to figure it out!!!

I think from what I read the 1st period is from July to the 5th April 2011.

I see in 1 example they are on about 16 months, but for the life of me I can't figure this out!

Appreciate any help
 
As a rule people prepare accounts for 12 months.

So your first set of accounts would have been Y/E 30 June 2011.

Your first tax return was for 2010 so 6 months July 10 - December 10 or 1/2 the profit for the year ended 30.06.11.

Your second tax return was for 2011 so 12 months ended 30.06.11.

Your 2012 return based in 12 months ended 30.06.12 and '13 based on 12 months to June 13.

Your 14 return is based in the profit from 1 Jan 14 to date of cessation so effectively 6.33 months over the 12.33 months to 11 July 2014. In the year if cessation you have to look at the actual profit in the Calendar year 2013.
 
Thanks Joe,
I will review that tonight when I have the accounts in front of me and I work it out on a spreadsheet.

Many thanks
 
As a rule people prepare accounts for 12 months.
Not necessarily. Its always the business owner's decision but I advise them where possible to stick to 31 December year ends. Simpler, avoids double taxation, and fewer unpleasant surprises on cessation.
 
As a rule people prepare accounts for 12 months.

So your first set of accounts would have been Y/E 30 June 2011.

Your first tax return was for 2010 so 6 months July 10 - December 10 or 1/2 the profit for the year ended 30.06.11.

Your second tax return was for 2011 so 12 months ended 30.06.11.

Your 2012 return based in 12 months ended 30.06.12 and '13 based on 12 months to June 13.

Your 14 return is based in the profit from 1 Jan 14 to date of cessation so effectively 6.33 months over the 12.33 months to 11 July 2014. In the year if cessation you have to look at the actual profit in the Calendar year 2013.

Unless you're previously familiar with the OP's situation from other threads is this not all idle speculation?

The date(s) to which they have prepared accounts will determine their commencement/cessation treatment.
 
Hi sorry I probably should have explained this better.

For 2010 I filed from July to Dec 2010.
2011 went from Jan to Dec and so on.
 
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