I have the option of joining a newly formed LLP as a member from either 1 Mar 12 or 1 May 12. the first year end is Dec 12. We expect profits to rise over the next few years. are the following basis periods correct:
1. If join 1 mar 12,
FY 11/12 1 month to mar12
FY 12/13 12 months to dec12
FY 13/14 12 months to dec13
2. If join 1 May 12
F 12/13 11 months to mar13
FY13/14 12 months to dec 13
FY 14/15 12 months to dec 14
Is there a general rule as to which option is better?
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It should be
For March
11/12 period 1/3 - 5/4/12
12/13 period 1/3 - 31/12/12 plus 1/1 - 28/2/13
13/14 ye 31/12/13 - Overlap to carry forward = 1/3 - 5/4/12 + 1/1 - 28/2/13
For May
12/13 period period 1/5 - 31/12/12 plus 1/1 - 5/4/13
13/14 ye 31/12/13 - Overlap 1/1 - 5/4/13