Basis period

Have you worked through the OT Study Notes and lectures for Chapter 6? In your example above what tax years are the first tax year and the second tax year?

Basically its a mcq question i will write it out below: Xose commenced trading on 1 February 2019 and prepared his first set of accounts to 30 June 2020. The period upon which profits will be assessed for the second year of trading is: A. 1 February 2019 to 5 April 2019 B. 1 February to 31 January 2020 C. 6 April 2019 to 5th April 2020 D. 12 months ended 30th June 2020 Please could you explain how you reached your answer? Thanks

My understanding is first year should be 1 February 2019- 5 April 2019 Second year 1 February 2019- 31 January 2020 because it needs to be a 12 month period with the overlap profit. But this is not the correct answer

Sorry are you able to help still? Thanks

The first statement I made in the answer I initially gave was: "Have you worked through the OT Study Notes and lectures for Chapter 6?" The further statements you have since made make me think that you have not - if you had you would have seen me work through examples to demonstrate the meaning of the rules for all the different scenarios you might encounter in the 2nd tax year and you would have had practice by working the examples. The next statement I made was: "In your example above what tax years are the first tax year and the second tax year?" and in the further responses you have given you have not done this. Go back to the notes and lectures that show you how these rules are applied and how to approach any scenario in opening years that you may have to deal with.