Confused about the basis period

Discussion in 'Accounts & Finance' started by Statto71, Sep 11, 2019.

  1. Statto71

    Statto71 UKBF Newcomer Free Member

    11 0
    Hi,

    I recently filed the self assessment declaration for a new partnership, that is run between my wife and me. The partnership started on 18 April 2018 and my wife joined the partnership in June 2018. The partnership's accounting period is 6 April to 5 April. The partnership uses the cash basis for accounting.

    I am in the process of completing my wife's 18/19 self assessment for her, I was just going to happily add her share of the profits so that she could pay her tax. But then I came across the boxes where it asks about the basis period and an adjustment if the basis period is not the same as the accounting period. I wasn't expecting to (and would prefer not to) make any adjustments.

    I'm a little (actually very) confused about this. We've divvied up the profits between us on a simple % basis for the period to 5 April 2019, do I need to make some adjustments because my wife joined the partnership in June 2018 and the partnership started in April 2018? If so, what do I need to do?

    Thanks in advance for any clarification on this.
     
    Posted: Sep 11, 2019 By: Statto71 Member since: Apr 27, 2018
    #1
  2. Mitchells Bristol

    Mitchells Bristol UKBF Ace Full Member

    1,381 385
    Hi there. You don't need to worry about basis period adjustments, as your accounting year is in line with the tax year. So you will report profit/loss for the period from 18 April 18 to 5 April 2019
     
    Posted: Sep 14, 2019 By: Mitchells Bristol Member since: Nov 24, 2011
    #2
  3. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,621 770
    Not quite sure how a partnership can start on the 18 April when there is only one person involved at that stage with your wife joining in june 18.

    The period 6 april 18 to june 18 should be reported as a sole trader activity with the partnership starting june 18.
     
    Posted: Sep 16, 2019 By: UK Contractor Accountant Member since: Sep 18, 2013
    #3