Sole Trader Cessation Period

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Sole trader year end accounts year ended 30 June 2017 prepared and ready to go on 2017-18 TR

Ceased trading 31 March 2018, so another set to prepare from 1 July 2017 to 31 March 2018 for the 2017-18 TR

I assume it makes no difference if they are prepared as above then entered on two lots of SE pages on the 2017-18 TR as a set of accounts isn't supposed to be for more than an 18 month period?

Overlap relief b/f of £10k can then be utilised against the overall profit for the 2017-18 tax year?

Just wanted to check, thank you.

 

 

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By thomas34
06th Apr 2018 16:54

Yes, you're right about the correct treatment and the 18 month limit and for which I'm not sure of the reason.

That said I've submitted a 23 month accounting period (on a change of accounting date) on a couple of occasions and got away with it both with HMRC and with my software which didn't reject it.

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RLI
By lionofludesch
06th Apr 2018 20:56

It makes no difference on a cessation. You can submit a 21 month period if you wish.

It does make a difference if a continuing business changes it's year end.

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