When does my financial year begin?

[Aussie Dean]

Hey All

I have an easy one for you!

When does my financial year begin?

I am a sole-trader. Is it the date I started trading or is it 6th April (UK fiscal year commence)?

Or do I have to give some more info regarding my circumstances.....

 

[BudgetB]

It would be the date you started trading, unless further down the line you had elected to change your accounting dates. However for the first year it'll be the date you start.

 

[Aussie Dean]

It would be the date you started trading, unless further down the line you had elected to change your accounting dates. However for the first year it'll be the date you start.

Thanks BB!

Just out of curiosity why would one elect to change accounting dates?

Cheers

 

[BudgetB]

Various reasons really. Some people will do it so that their accounts run in tax years, or for commercial reasons such as having a year end at a quiet time of the year, or when there is the least stock to lesson the load of a stock take, to make the business run in line with other businesses in the same group.

 

[accountancyextra]

Thanks BB!

Just out of curiosity why would one elect to change accounting dates?

Cheers

There can be tax advantages from choosing a differant year end. Your accountant should be able to talk you through them and ascertain whether it would be of benefit to you