BPT Basis periods mindmap
- Created by: haylz123
- Created on: 05-03-16 10:45
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- Basis Periods
- Cessation of trade
- Last tax year = year cease to trade
- Assessed using special 'closing year rules'
- Tax all profits not yet assessed - overlap profits
- Ongoing business
- Assessed on accounting period ending in tax year 'current year basis'
- Applies to ongoing businesses
- Tax the 12 month set of accounts that ends in the tax year
- Start of trade
- Assessed using special 'opening year rules'
- First tax year
- Actual basis: Tax from start of trade to following 5 April
- Second tax year
- Is there a POA ending in the 2nd tax year?
- Yes
- How long is the POA?
- Exactly 12 months - Tax that period of account: CYB
- Less than 12 months - Tax first 12 months of trading (ie from start)
- More than 12 months - Tax last 12 months of long POA
- How long is the POA?
- No
- Tax actual tax year (06.04 - 05.04)
- Yes
- Is there a POA ending in the 2nd tax year?
- Third tax year
- Tax 12 months of profits to accounting date ending in the third tax year
- Cessation of trade
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