In this guidance note, references to the ‘old UK generally accepted accounting practice’ or ‘old UK GAAP’ are to the combination of UK accounting principles contained in the Financial Reporting Standards (FRSs), Statements of Standard Accounting Practice (SSAP) and Urgent Issues Task Force (UITF) abstracts.
References to the ‘new UK GAAP’ are essentially to FRS 100, FRS 101, FRS 102 and FRS 105, which replaced the old UK GAAP for accounting periods beginning on or after 1 January 2015 (1 January 2016 for FRS 105).
Companies that qualified as ‘small’ under the definition in CA 2006, ss 381–384 were eligible to use the FRS for FRSSE in preparing their financial statements for accounting periods beginning before 1 January 2016. The FRSSE was withdrawn for accounting periods beginning on or after 1 January 2016.
Such companies have had to adopt either FRS 102 (with small company disclosure exemptions) or, if eligible, FRS 105 (as described below) for accounting periods on or after 1 January 2016.
Since 2005, companies with a listing on a regulated
Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).
Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit
Non-trading deficits on loan relationshipsOverview of non-trading deficits (NTDs)When a company’s debits on its non-trading loan relationships and derivative contracts in an accounting period exceed the credits on its non-trading loan relationships and derivative contracts in the same period (the