Encountered something that I have not come across before.
Client started trading on 1 March 2019 but as the business was not as successful as they'd have liked it to have been, they ceased on 31 May 2019. Turnover for the period was £3,000.
I know that the trading allowance is not pro-rated for short accounting periods and was going to just enter a 3 month period on my software. However if the client was to split the period into 1 month trading to 5 April 2019 and a short cessation period thereafter (i.e. two set of 'accounts'), the software will allow her to cliam two trading allowances, rather than one pro-rated allowance.
Is this correct? If so it seems like a no brainer to me.
Thanks for your answers in advance.