Sole traders

For restrictions relating to losses incurred by sole traders using the simplified cash basis, see the Simplified cash basis for small businesses guidance...

Current year basisThe usual basis for taxation of sole trader profits is known as the ‘current year basis’. This means that in respect of a year in which the trade is...

If the taxpayer does not have sufficient information to enable him to complete the tax return in the time allowed, he should include either a best estimate or a...

Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the...

This note discusses the issues around changing accounting date.Once a business has established an accounting period end it is fairly uncommon to change it. Many...

This guidance note discusses some of the planning points that can arise around payments on account.Payments on account are essentially a part of the compliance process....

Special rules apply to calculate a trader’s taxable profits when he changes his accounting date. These special rules apply for unincorporated businesses only. The rules...

Because sole traders are the most simple trading entity possible, it is very easy to overlook them when it comes to planning work. It is often the case that planning for...

Factors to considerWhen choosing an accounting date for a business, there are advantages and disadvantages in picking certain dates.There are three key factors to...

This guidance note considers some of the planning points in relation to the accounting period end. This includes:•planning work prior to the year end•considerations in...