I wanted to double check myself. If accounts are prepared from 01.01.2009-31.12.2009, for the actual tax returns is it correct that the tax return will be completed for the year ended 2009 and again for 01.01.2010-31.12.2010 the year ended 2010, using the rates and rules for those years?
Just on my way out to a clients but for whoever answers this one you also need to say whether this is the opening year that you are talking about as different rules apply (and if it is opening year someones going to be taxed twice on the same money using those dates).
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I'm back... What, nobody else filled in the gaps... Ok, back to me then.
Using those dates there will be a carried forward loss or double taxation from the fron the first year as the dates would have been
Jan to Apr
Jan to December
there's three months early on in the business that would have been processed twice and you could do with finding out what amount is being carried for you records in case the business either changes reporting dates or ceases to trade.
Opening / closing year rules aside, the basis of assessment is the twelve month accounting period ending in the current tax year so in your example, 31/12/2009 ends in tax year 09/10 so you would use FA09 rules and rates for tax year 2009-10 (which would incorporate your business with a year running from 01/01/2009 to 31/12/2009 as that ends within the year) and FA10 rates and rules for tax year 2010-11 on a similar basis.
HTH,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
If you change it the overlap profit or loss from the start of the business will come into play so you will need those details of what transpired in the three month overlap from the client or the previous bookkeeper.
At the risk of opening up an ugly bag of worms as the dates are already running smoothly personally I would not change them.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
