PTP Tax Tip No 31 - Spreading under UITF 40 ' Varying profits

Q. I am a sole trader working in the professional services industry with a 31st December year end. Because of the type of work I do my profits vary year to year by a large amount. My profit for the year ended 31.12.05 will only be £6,000 whereas in 2006 it could be as much as £80,000. I have some savings but very little income other than my business income. The UITF income adjustment has been calculated at £21,000. I understand the spreading idea but are there any possibilities I've missed to save some money?

A. Yes!

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