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If trader prepares accounts to 30th April, In the 2nd year, how do you say there is no accounting period ending in that tax year ?
Tax year = (06.04.2017 to 05.04.2018) right?
isn’t 30.04.2017 an accounting year that ends in that tax year?While you’re waiting for a reply from the tutor, can I try to answer it please?
If they started trading on 01.01.2017, and their first accounting period was, say, 16 months (to 30.04.2018) there would be no accounting period ending in the tax year 06.04.2017 to 05.04.2018. Therefore the second accounting period would be the same as the tax year. I don’t know if this rule applies to the example you gave, as you didn’t give the year the accounts were prepared to.
What Neil has stated is correct – you have not stated when the accounting period started to actually know whether this period is an accounting YEAR ended on that date or not! You need to determine the length of the accounting period that ends in that tax year if there is one – I would NOT say there is no accounting period ended in that tax year in the example you quote as clearly there is one!
I think you need to go back and look carefully at the precise wording of the rules that apply as you are mixing up different issues here
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