Taxfiler sole trader opening year rules

Can taxfiler deal with opening year rules for ST

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Taxfiler has an accounts prep function that feeds through to the SA100. Great so far.

Does anyone know if Taxfiler can deal with opening year rules for sole traders automatically.

So, for instance, if there is a sole trader who starts trading on 1st Jan 15 and first year end 31 May 15 - profit 50k. Is there a way for taxfiler to fill the SA100 with £30k (being actual year basis 1 Jan 15 to 31 Mar 15 i.e. opening year rules)?

I wouldn't have thought this a difficult thing for software to do but I can't see the option

If not available for taxfiler, is there any other software that can do this?

Replies (4)

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By Tim Vane
15th Jun 2016 16:42

No it doesn't. But I recommend asking them to add it as a feature - they're usually pretty good at responding to user suggestions.

Thanks (1)
RLI
By lionofludesch
15th Jun 2016 17:07

That's not how it's done .... you file the whole accounts and make your adjustments on the tax return.

So you'd file accounts showing £50,000 and make an adjustment of -£20,000 to bring it to the correct profit.

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Replying to lionofludesch:
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By Kylo Ren
15th Jun 2016 17:25

Thanks that's very helpful. I was not aware of that

Is that pre or post capital allowances? I think from what I can work out, using my above example your capital allowances would be reduced to 5/12ths of 18%, deducted from trading profit giving a net business profits for the 5 months. Then make a 2/5ths adjustment to account for it as the actual year basis in the appropriate box?

Is the adjustment made in the box "Adjustment to arrive at profit for the basis period" in tax filer and box 68 on the tax return ("If your basis period is not the same as your accounting period...")?

Would you fill in the details of the adjustment in the white space provided?

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Replying to Kylo Ren:
RLI
By lionofludesch
15th Jun 2016 17:38

Kylo Ren wrote:

Thanks that's very helpful. I was not aware of that

Is that pre or post capital allowances?

Capital Allowances have been part of the accounts since SA/CYB started in 1997.

So you'll only get 3/5 of the allowances in the May 2015 accounts on your 2014/15 SA return.

Yes that's the box and I would add an explanation in the white space.

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