Basis periods

Alan has been in business for several years, prepares accounts annually to 31 December. The basis period for tax year 2022/23 is:

• Year ended 31 December 2023

• Year ended 31 December 2022

• Year ended 31 December 2021

• Year ended 5 April 2023

A sole trader, who has been in business for several years, prepares accounts annually to 30 April. The basis period for tax year 2022/23 is:

• Year ended 30 April 2023

• Year ended 30 April 2021

• Year ended 30 April 2022

• Year ended 5 April 2023

In the final tax year, the trader will always be taxed on 12 months profits.

True or False?

• True

• False

Michael had been trading for many years and decided to cease trading on 30 September 2022.

Which tax year did the cessation tax place?

• 2021/22

• 2022/23

• 2023/24

Susan had been trading for many years and decided to cease trading on 30 April 2023.

Which tax year did the cessation tax place?

• 2021/22

• 2022/23

• 2023/24

Which tax year do the new basis of assessment rules fully apply from?

• 2022/23

• 2023/24

• 2024/25

Grant prepares accounts annually to 31 May. The profits that will be taxed in tax year 2024/25 will be:

• Year ended 31 May 2024

• Year ended 5 April 2025