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Adjusting profit to basis year
busybee100
Posts: 1,554 Forumite
in Cutting tax
Apologies if you have covered this previously.
I have done a search but there was nothing obvious.
My friends accounts run from August 07 to July 08.
His basis year is August 07 to April 08.
I have some first year allowances available but do not want to use them if not necessary.
I therefore want to work backwards to see how much to include but do not know how to calculate the adjusted profit.
I'm guessing, 2/3 of total profit?
Thank you, much appreciated
Bx
I have done a search but there was nothing obvious.
My friends accounts run from August 07 to July 08.
His basis year is August 07 to April 08.
I have some first year allowances available but do not want to use them if not necessary.
I therefore want to work backwards to see how much to include but do not know how to calculate the adjusted profit.
I'm guessing, 2/3 of total profit?
Thank you, much appreciated
Bx
0
Comments
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It's ok I think I'm sorted.
Calculated it in days relevant to 07/08.
Bx0 -
Did the trade start August 2007?I am an Accountant. You should note that this site doesn't check my status as an Accountant.All posts on here are for information and discussion purposes only and should not be seen as professional advice.0
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Yes 01/08
Bx0 -
Yes, you sound like you are doing it right.
Assuming the accounts are made up for the year ended 31 July 2008, the basis period for 2007/08 is 1/8/07 to 5/4/08 so you take 249/366 of the taxable profit.
If the year-end date is unchanged, the basis period for 2008/09 will be 1/8/07 to 31/7/08 and there will be overlap relief to carry forward, but you can ask about that next year!I am an Accountant. You should note that this site doesn't check my status as an Accountant.All posts on here are for information and discussion purposes only and should not be seen as professional advice.0 -
:beer:
Thanks Mark
I'll be back next year.
Bx0 -
why make it so complicated can't you just do the accounts till 5 April??0
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