Could somebody PLEASE have a look at HMRC’s Self-employment (full) notes 2017/18 [sa103f_2018] and HS222 "How to calculate your taxable profits 2018" with respect to Accounting Period dates (boxes 8 & 9) please? Either I am totally confused or they are a) wrong and/or b) inconsistent one with the other. [Text in these brackets not relevant for the client example I am using] The inconsistency in their advice is very undermining of my confidence.
My client started trading 8.4.16; first accounts made up to 31.5.17. 2nd accts made up to 31.5.2018. 2016/17 SAR Basis period: 8.4.16-5.4.17
I believe her 2017/18 Basis period is 1.6.16 -31.5.17 because a) the business commenced in the tax year before 2017/18 and b) she has an accounting date in 2017/18 (31.5.17) and that accounting date is 12 months or more since commencement, so BP is 12 months to Accounting Date - see HS222 below.
My intended 2017/18 Box 8 & 9 entries - Accounting Period start/end therefore: 8.4.16 - 31.5.17 (same as 2016/17 return)
"If you’re not a new business your accounting period starts on the day after the end of your previous accounting period. For example, if you made your accounts up to 5 April 2017, your new accounting period starts 6 April 2017.”
No ifs, no buts or reference to accounting periods longer than 12 months.
This would imply that my client’s 2017/18 accounting period start/end entries (Boxes 8 & 9) = 1.6.17 - 31.5.18
"12. Business started in 2016 to 2017
If you started the business during the period 6 April 2016 to 5 April 2017 (Yes), your basis period is[(unless you’ve ceased the business or changed accounting date during 2017 to 2018)] is:
the 12 months to your accounting date, if your accounting date in 2017 to 2018 is 12 months or more after the date on which you started the business (Applies to my client)
the 12 months beginning on the date you started, if your accounting date in 2017 to 2018 is less than 12 months after the date on which you started the business
6 April 2017 to 5 April 2018, if you don’t have an accounting date in 2017 to 2018
If my accounting period dates are correct, Basis Period therefore = 1.6.16 - 31.5.17; if their Accounting Period is correct my client doesn’t have an accounting date in 2017/18, so Basis = 6.4.17 - 5.4.18
Box 8 Date your books or accounts start – the beginning of your accounting period
The beginning of your accounting period is usually the day after the end of your previous accounting period. For example, if you made your books up to 5 April 2017 last year, the date your books start this year will be 6 April 2017. (Same as SA222)
[If you’ve been working for yourself for less than 12 months at 5 April 2018, put the date you started trading in box 8.]
Box 9 Date your books or accounts are made up to or the end of your accounting period. It’s usual to make your books up to the same date each year – your end of year or accounting date.
If you started trading between 6 April 2016 and 5 April 2017 [and made your first books up to 5 April 2017, put 05 04 2017 in box 9.]
If you made up your first books for 12 months or longer (to a date after 5 April 2017) (APPLIES TO MY CLIENT), put 05 04 2018 in box 9. THIS IS DIFFERENT TO SA222.
So we have 3 different Box 9 candidates:
Who's correct? Many thanks if you have got this far!