I have been a sole trader since 01/11/09, i was going to use the 31/10/10 as my year end but have been advised to use the 05/04/10 as this would be easier to apportion expenses which are incurred due to having my office at home.
With this being the case am i right in thinking that i apportion the expenses by 5 months? Also, how would i account for the depreciation with it not being a year?
further to the previous answer, I agree you should do your accounts to the fiscal year otherwise you potentially will get taxed on the same profits twice (overlap profits) in the first two years because the way opening years work for tax purposes, ie if you did a 12 month period you would have your profits apportioned to 5th April and your second year would be your first 12 months profit (since 31.10.10 is in 10/11 year), hence you would be taxed on the period from 01.11.09 to 05.04.10 twice! So I think the advice may be because of this rather than the other reasons given.
