OK so my brain is frazzled from the January rush! I have got a sole trader who has incorporated and has two sets of accounts - one for the year ended 31st December 2016 (usual year end) and one for the 3 months ended 31st March 2017 (cessation). It was beneficial to split like this rather than a 15 month period in order to claim capital allowances in the 12 month period as we couldn't have otherwise claimed AIA in cessation period. Do I just include the 12 months ended 31st December 2016 on the 2016/17 tax return and the 3 months to 31st March 2017 on the 2017/18 tax return or do both periods go on the 2016/17 tax return as trade ceased before 5th April 2017? Thanks in advance.
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Agreed - but it should have been obvious. Why would results for the period ended on 31 March 17 be included on the 17/18 return?
I know it is not the case, but logically they might have been, because, but for the cessation, they would have been.
Only if the accounting period to 31 March 2017 is the first period and there is a subsequent change of accounting date.
It's not beneficial to split into a 12 and 3.
Overall, you'll get the same capital allowances, which will, ultimately, be based on closing or exit valuations.
If you can't work out how to use your software, stick everything into a 15 month period.
Job done.
Ah - you didn't mention that.
So are we now down to deciding how to enter it into your software ?
Add 2 self employment pages, 1 for each accounting period. Why do you need to adjust the profit?
You cannot file two sets of trading pages electronically. You enter both into the software but only one is part of the return. The other is attached as a pdf file to the submission so yes. you need to talk to Taxfiler to see how they deal with the attachment
https://www.gov.uk/government/uploads/system/uploads/attachment_data/fil...
special cases example 8 refers
Digita is just the same - I understood that it is a limitation of HMRC so to try to file 2 at once would fail the process