Sole Trader - Year 2 Profits for Tax Return

[accsvalue]

Sole Trader prepares first trading accounts from July 2010 to January 2011. Therefore he's assessed on profits to December 2010 in tax year 2010.

Accounts prepared to year ended January 2012 in 2nd year of trading. How is his tax assessed for 2011?

Thanks

 

[Gervan]

In this case, as there is not a 12 month set of accounts ending in 2011, the profits for the second year will be one seventh of the profits in the period ended 31/01/11 plus eleven twelfths of the profits in the year ended 31/01/2012.
The actual profits for the year ended 31/12/2011.

 

[accsvalue]

Thanks. Therefore the profits assessed in Year 3 (2012) will almost be the same since the year end is 31/01/12.