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Business commenced on 1-1-2013
30-04-2013 profit 3,840
30-04-2014 profit 12,060How do we calculate the basis period for 2013/2014?
Answer says first 12 months of trading. I am bit confused.
You need to study and learn the basis periods in opening years – OT course notes chapter 7 and then attempt this question. Also review answers to earlier student queries on this question.
There are 3 conditions to determine second tax year. Your case is condition 2 .
if you draw these on paper you will be clear about it. (On this site I can’t draw any line)Second Tax year
Condition 1
{************1st tax year****************}
commencing date …………………….5 April …………………Acc Y/E……………….5 April
___________________{************12 months***************}2nd tax year(____________________>= 12 months____________________)
If the period from commencing date to first Acc Y/E date is equal or more than 12 month
(2nd tax year is 12 months to first Acc Y/E date)Condition 2
{**********1st tax year**************}
commencing date…………………..5 April …………………..Acc Y/E…………………….5 April
{*************************12 months********************************************}= 2nd tax year(_____________________< 12 months____________________)
If the period from commencing date to first Acc Y/E date is less than 12 months
(2nd tax year is the first 12 months)Condition 3
{********1st tax year********}
commencing date …………….5 April ………………………………………5 April
__________________________{***********************************}= 2nd tax yearIf there is no Acc Y/E between the first 5 April and Second 5 April
(2nd tax year is from the first 6 April to Second 5 April)I beg your pardon, Sir! I did not know that I shouldn’t write here. I’m ashamed of myself!
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