Taxation period of Sole Trader becoming Director of ltd company

bennyb86

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I'm a sole trader and I am forming a ltd company and becoming a director to continue my business.

Accounts are to end of May.
First year of accounts 1/6/2011 -> 31/5/2012 (2012 Tax return)
Last year of accounts 1/6/2019 -> 30/4/2020 (2020 Tax return)

2019 Profit: 55,000
2020 Profit: 50,000

I have an accountant but I basically want to confirm what he's saying as it seems a bit odd to me. He says that when I do my income tax return for 2020, it will include the 50,000 profit + anything I earn from 1/5/2020 to 31/12/2020.

This would mean that for 2020 I will be taxed on 19 months of income (1/6/2019 -> 31/12/2020) as if it was 1 year
Is this correct?​
 
When you say "2020 profit: 50,000", is that the profit from 1/6/19 to 30/4/20? If so, the cessation of trade means that 50,000*4/11 = 18,182 is the assessable self employed profit for 2020. Your salary from the ltd company will be added to that to get your taxable income for the year.
 
Thanks for your reply.
Yes, that's what I meant and after pointing this out to my accountant it turned out he was wrong.
So I will be taxed as you say on 18,182 + salary for the remainder of the year.
 
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