Start A New Business
if I start a new business this week, what will be my basis and accounting periods? will it matter?
I am sole trader and want to start business this week (week of 9th of March), and preferably starting tomorrow. What will be my basis period and accounting period? I don’t understand what those really are and why I should be concerned about them. Can I just start trading whenever I want and let the accountant worry about the accounting periods? Thanks in advance
Your first year of trading (to 10/03/10) will include the 2008/09 basis period (11/03/09-05/04/09).
The 2009/10 assessment will be on the first full year to 10/03/10.
2010/11 will be y/e 10/03/11.
Overlap relief will cover the double tax on the first year.
It doesn’t make ANY difference, but it’s more convenient to start on 06/04/09 as it saves overlap.
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