Partnership Opening Years

Partnership Opening Years

Didn't find your answer?

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?

Replies (1)

Please login or register to join the discussion.

avatar
By ACDWebb
24th Jan 2012 09:13

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

Thanks (0)