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1) Please can you explain how to get around calculating the year for the basis period. I get confused on identifying if a particular year end is in a specific period.
2) how do I identify the month(s) which have the overlap period. From the video, I understand the second option of getting the number of months by using the last period date to the tax year but I’m not clear on how to identify the specific months.
3) I’m also not clear on how we identify what year falls under the CYB in the examples treated.
Basis periods are complicated.
It is vitally important that you learn the rules first.
1. in year one its the start date (given in the question) to the next 5th april – that is year one and the dates will tell you which tax year it is. Then follow the flow chart/rules to work out the other basis periods.
2. Over lap periods are the months that are taxed twice whenever that might be and it depends on the dates of the accounts etc. – check out the rules.
3. A cyb arises when the financial accounts with a year end are taxed – so year ended 31.12.21 is taxed in 21/22 – thats a CYB
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