Advice for Self Employed-What accounting Date for Form 11

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greatwall

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Hi,

I'm new to this so I apologise in advance if this is a common question that has already been answered.

My brother registered as a Self Employed person on 1st March 2012 so his year end is 28th February 2013.

My question is that when doing up the Accounts for the Form 11 return do I do them to December 2012 or to 28th February 2013? (I have set him up in Tas books as ye 28/02/13)

The reason im querying the date is that his Accountant said to do his Accounts to December 2012.

Thanks,
 
It depends on what type of income it is. For rental and investment income it is the calendar year. Employment income is generally calendar year though there are a few funnies for directors.

For trading/professional income (called case I) there are commencement provisions. For your first year of trading your the period is from your date of commencement to trade to 31 December. For your second year of trading it is the first twelve months of trading and for your third and subsequent years it is the 12 month period ending in that year. In your case if you do a 12 month set of accounts to 28 Feb 2013 your taxable income for 2012 will be 10/12 of your accounts profit. Your 2013 income will be based on the accounting profit for the 12 month period ending 28 Feb 2013.

I would do your accounts to 28th Feb 2013 as this will provided the figures for the first two years.
 
Indeed I would do the accounts to 28 Feb 13. It allows you to budget much better for Prelim Tax.
 
Joe_90 said:
Indeed I would do the accounts to 28 Feb 13. It allows you to budget much better for Prelim Tax.
Click to expand...

In general, I disagree. There are advantages in aligning an accounts year-end to the tax year end of 31 December, not least the fact that its relative simplicity minimises the risks of misunderstandings and confusion, not least on the part of Revenue.

That said the decision in each case is up to the client.
 
I accept that but I have found that a feb year end gives the opportunity to pay the exact tax in October and there is no issues around paying 100% of the prior year and then having a balance of last year and preliminary tax for the current year ect ect.
 
I find it much simpler (less difficult because it's definitely not simple) to use the calendar year. Less danger of error but then I'm not a professional
 
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