Completing a SA Rtn for extended Self Emp period

How do I record details of a 17 month Accounting period?

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I have a final set of Sole Trader Accounts covering 17 months and I am after clarity on how they should be recorded on the SA Return.

Do I recorded the figures and breakdown for the whole 17 month period and then enter a negative figure in the Adjustment box to apportion the Taxable Profit? Or do I apportion all of my figures before I enter them onto the Return?

Thanks

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By Wanderer
01st Dec 2020 07:36

Pacenote wrote:

.... and then enter a negative figure in the Adjustment box to apportion the Taxable Profit? Or do I apportion all of my figures before I enter them onto the Return?

Why would you be doing either of those?
Have you considered your overlap relief entries?
Details of previous / new year ends may help.
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Replying to Wanderer:
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By Pacenote
01st Dec 2020 10:47

This is a cessation situation. previously the year end was 31/03 and the final 17 mths Accounts run to 31/08. The period 5 month period after 31/03 are loss making and so by preparing 17 mth accounts and the apportioning them across the two tax years, it will help spread the tax liability. If two sets of Accounts are prepared there will be a high tax bill for 2019/20 and then a loss in 2020/21. I don't believe that Overlap relief is applicable with these dates.

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Replying to Pacenote:
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By lionofludesch
01st Dec 2020 10:56

Pacenote wrote:

This is a cessation situation. previously the year end was 31/03 and the final 17 mths Accounts run to 31/08. The period 5 month period after 31/03 are loss making and so by preparing 17 mth accounts and the apportioning them across the two tax years, it will help spread the tax liability. If two sets of Accounts are prepared there will be a high tax bill for 2019/20 and then a loss in 2020/21. I don't believe that Overlap relief is applicable with these dates.

So you do cross two 5ths of April.

Yes, you need to apportion as you have no year end in the penultimate year.

You should still consider two sets of accounts as you can carry the loss back using terminal loss relief (as well as other options). Much depends on what the taxpayer intends to do post cessation.

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Replying to lionofludesch:
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By Pacenote
01st Dec 2020 12:26

Thanks. Do I record the 17 months figures on the Tax Return and the put an entry in the Adjustment box or do i apportion all the figures and then enter the apportioned figures on the return?

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Replying to Pacenote:
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By lionofludesch
01st Dec 2020 12:40

Whole 17 months, with an adjustment to bring the profits down to the correct figure.

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Replying to lionofludesch:
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By Pacenote
01st Dec 2020 13:02

Many thanks

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By Wanderer
01st Dec 2020 07:41

Pacenote wrote:
Completing a SA Rtn for extended Self Emp period
How do I record details of a 17 month Accounting period?

I have a final set of Sole Trader Accounts covering 17 months and I am after clarity on how they should be recorded on the SA Return.

Do I recorded the figures and breakdown for the whole 17 month period and then enter a negative figure in the Adjustment box to apportion the Taxable Profit? Or do I apportion all of my figures before I enter them onto the Return?

Thanks


Isn't this similar to the question you asked here:-
https://www.accountingweb.co.uk/any-answers/self-assessment-cessation-rules
What did you do then?
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Replying to Wanderer:
RLI
By lionofludesch
01st Dec 2020 07:49

Wanderer wrote:

Pacenote wrote: Completing a SA Rtn for extended Self Emp period
How do I record details of a 17 month Accounting period?

I have a final set of Sole Trader Accounts covering 17 months and I am after clarity on how they should be recorded on the SA Return.

Do I recorded the figures and breakdown for the whole 17 month period and then enter a negative figure in the Adjustment box to apportion the Taxable Profit? Or do I apportion all of my figures before I enter them onto the Return?

Thanks

Isn't this similar to the question you asked here:-
https://www.accountingweb.co.uk/any-answers/self-assessment-cessation-rules
What did you do then?

Sounds like the OP would be better sticking to March year ends. Overlap relief is just too complicated.

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RLI
By lionofludesch
01st Dec 2020 07:47

If it's a cessation and the accounts only cross one 5th April, the whole 17 months is taxed, less overlap relief brought forward.

No apportionment necessary.

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