• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA Books

Books for Sept'23 ACCA exams : Get your discount code >>

New! Ask ACCA AI Tutor

Post your questions
& get instant answers

Question related to Basis Period of Trading Income

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Question related to Basis Period of Trading Income

  • This topic has 1 reply, 2 voices, and was last updated 1 month ago by JillyB.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 2, 2023 at 5:49 am #689260
    annsh901
    Participant
    • Topics: 3
    • Replies: 3
    • ☆

    Alexandra started in business as a sole trader on 1 August 2021 and prepared her first set of accounts to 30 April 2023. What is her starting date and and end date for the tax year 2022/23, her second tax year of trading?

    Shouldn’t the answer to this question be;

    STARTING DATE : 1 May 22
    ENDING DATE : 30 April 23

    as 1 May 2022 and 30 April 2023 fall in the period 1 August 2021 to 30 April 2023

    Thanks

    August 2, 2023 at 2:42 pm #689285
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 428
    • ☆☆☆

    The rules for basis periods as found in the manual are so important. You must learn them.

    Year 1 – 1.8.21 to 5.4.22 – tax year 21/22 – 8 month of the total profits
    Year 2 – this is where you need to ask the question – is there a set of accouns with a year end in this tax year and the answer is not – so following through the flow chart you see that becasue of this the basis of assessment must be actual – i.e. 6.4.22 to 5.4.23 – 12 months of the total profits.
    Year 3 – repeat the question and the answer this time is yes – the year end is 30.4.23 but it is longer than 12 months – so follow through the flow chart and the rule says – 12 months to the year end – i.e. 1.5.22 to 30.4.23 – 12 months of profits

    This then gives rise to overlpa profits.
    Please learn the rules using the flow chart.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA Qualification syllabus changes for 2023/24

Need verifiable CPD for 2023? 21 units of FREE CPD on offer from ACCA

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

PQ Magazine

Latest comments

  • nghja2012 on Inventory – Examples – ACCA Financial Reporting (FR)
  • kelems on Basic group structures – SPLOCI introduction and example – ACCA (SBR) lectures
  • jcosgrove16 on Double Entry Bookkeeping (part a) – ACCA Financial Accounting (FA) lectures
  • ayeodele on The management of receivables – Change of policy – ACCA Financial Management (FM)
  • Akhil004 on Discounted cash flow techniques (part 2) – ACCA (AFM) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in