Hi and thanks to all in advance,
If a sole trader has an accounting period of 02/08/2013-01/08/2013 and ceases trade on the 01/08/2013. Would that person complete their taxes for 2012-13 or file for a tax return on the over lapping period in 2013-2014?
thanks
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Date?
On the assumption that your start date should read 2012, then profits 2/8/2012 to 5/4/2013 (or 31/3/2013 if more convenient) would be on the 2012/13 SATR. The period from 6/4/2013 to 1/8/2013 would be declared on the 2013/14 return.
You don't need to split the year then. The year ended 1st August 2012 will be included on the 2012/2013 tax return. The year ended 1st August 2013 will be included on the 2013/2014 tax year. There might also be overlap relief which can be offset, but this can only be offset in cessation year or when changing a year end date.