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    Income tax - Trading income - Sole traders - Profits - Computation of trading income - General rules - 21000

    Trading income comprises profits from a trade, profession or vocation. Tax is charged for each tax year on the profits of the basis period for that year (¶21100). The profits of sole traders (individuals)...

    Income tax - Trading income - Sole traders - Profits - Taxation of trading profits - The continuing business - Basis periods - 21105

    A continuing business is one which has been in existence for more than 3 tax years and which has not been the subject of a change of accounting date during the current tax year. For each such...

    Income tax - Trading income - Sole traders - II. Losses - Commencement of trade - Claiming relief - 21450

    Where a loss arises in the first 3 years of a new business (or on the change of an accounting date), the losses in aggregation rule must be applied. This states that where the results of one accounting...

    Income tax - Trading income - Partnerships - Partnership profits - Taxation of partnership profits - Apportionment between the partners - 21720

    Partnership profits (or losses) for an accounting period are allocated among the partners in accordance with their interests in the partnership during that period. Each partner is then treated...

    Income tax - Trading income - Special trades - Lloyd's underwriters - General principles - Accounting year - 22475

    The accounting year at Lloyd's is the calendar year, so the accounting year ending on 31 December 2018 is known as “the 2018 underwriting account”. Each account is normally kept open for...

    Basis periods in the final years of a trade

    Your client’s unincorporated business will cease trading shortly. There are specific rules that govern how the final profits are calculated. How do you apply the correct basis period, and is...

    Dealing with the opening year rules in practice

    In most cases your unincorporated clients’ tax basis period will be the same as their accounting period. But this may not be true in their early years - and there can be complications. What...

    Are you looking for a change of accounting date?

    If you’re in business as a sole trader or in partnership, a change in your accounting date can affect when your profits are taxed and even the amount of tax payable. Could you benefit from...

    Change your accounting date to save tax

    If you’re self-employed, whether you’re running a full-time business or just doing some freelance work on the side, now is the time to think about changing your accounting year. Why?

    A bit of an overlap

    There is often an argument for extending your current accounting period purely for tax reasons. If you are a sole trader or partner this can give you the opportunity to use a valuable tax relief. What...