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Posted Sun, 07 Aug 2022 15:44:09 GMT by Kevstevens
I closed my sole trader business in November 2021, after starting a PAYE permanent position in Sep 2021. As my self-employed accounting only runs to Nov 2021, does this mean my basis period and accounting period no longer match? Or does my basis period including the whole year for FY 20/21 because of my PAYE job?
Posted Mon, 08 Aug 2022 12:51:13 GMT by HMRC Admin 17

Hi,
 
When completing the Self Employed pages of your 2022 tax return, you will be asked to

(a) confirm the date your Sole Trader business ceased and

(b) enter the amount of business income received from the date your accounts year started
to the date the business ceased to operate.       

See link:

Business records if you're self-employed    .

Thank you.
Posted Mon, 08 Aug 2022 18:15:53 GMT by Kevstevens
So my basis period and accounting period will be the same, despite ceasing trading mid-way through the year? Thanks
Posted Wed, 10 Aug 2022 07:44:42 GMT by HMRC Admin 17

Hi,
 
Basis periods and accounting periods can be different.

On cessation, the basis period begins the date after the last basis period ended and ends on the date the business ceased - see HS222 HS222

How to calculate your taxable profits (2022) - GOV.UK (www.gov.uk)

HS222 How to calculate your taxable profits (2022)   .

Thank you.

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