- Original Poster
- #1
Normal year end for a self employed decorator = 7 September.
Client now wants to run accounts to 5 April 2013, but that would exceed the maximum basis period of 18 months.
Instead, could he enter year end 7 September 2012 accounts on the 2012-13 Tax Return self employed page and then another self employed page on the 2012-13 Tax Return covering 8 September 2012 - 5 April 2013?
Would the year ended 7 September 2012 be classed as cessation accounts and would he need to use his overlap relief on these accounts (was hoping to be able to carry it forward as profits are below personal allowance)
Technically, he will be operating the same business but he wants to bring the year end in line with the tax year end as he is doing a lot of CIS work with 20% deductions, so it would be easier for him to budget for tax etc if year end was the same.
Client now wants to run accounts to 5 April 2013, but that would exceed the maximum basis period of 18 months.
Instead, could he enter year end 7 September 2012 accounts on the 2012-13 Tax Return self employed page and then another self employed page on the 2012-13 Tax Return covering 8 September 2012 - 5 April 2013?
Would the year ended 7 September 2012 be classed as cessation accounts and would he need to use his overlap relief on these accounts (was hoping to be able to carry it forward as profits are below personal allowance)
Technically, he will be operating the same business but he wants to bring the year end in line with the tax year end as he is doing a lot of CIS work with 20% deductions, so it would be easier for him to budget for tax etc if year end was the same.
