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Tax summary - change dates (sole trader)

Continuing the discussion from Tax summary- change dates:
Tax summery is still showing as the tax year dates and not reporting as set the year end date 30/11 (sole trader account ***451). Is there a fix for this?

Hi @alan_mcbrien

For a sole trader, the accounting period for tax purposes is 6th April - 5th April, although your accounting dates may be different (as per your example)

Yes, but the figures you report on your tax return are those from the accounting period that ended during the tax year in question (with overlap issues if your year end isn’t either 5th April or 31st March) so the income tax summary should still be based on accounting dates.

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Ah ha, I see what you mean ;). Apologies - it didn’t cross my mind when I read the first post

I’ll change this back to a bug and see if someone can look into this.

This is a relatively basic report and It was always designed to mirror the tax year. Unfortunately at the moment we can’t support sole trader accounting periods that differ from the tax year. This would involve apportioning the profits/loss for potentially different tax rates and bandings, which really go beyond the scope of this tool.

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Has this tool upgraded since this original post? My tax year is Jan-Dec for UK to mirror my US. HMRC accepts the change of year dates. Does QuickFile now? Many thanks.

Hi,

Yes this has been updated and there is a little pencil next to the dates to edit them.

image

Hope this helps

Thanks, Beth. Much appreciated.

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The screenshot above shows that you can edit the date for Corporation Tax. There doesn’t seem to be that option for Income Tax though. As Ian mentions, you pay income tax on your profit/loss for the accounting year which ends in the 6th April - 5th April year. For those of us with unaligned accounting periods, Quickfile is just taking the P&L from April to April, which is wrong.

Hi @cjdshaw

The position hasn’t changed since my colleague’s post above.

But if there are any changes here, we’ll post them on the main forum.

You make comment that the “tax summary report” has limitations, which I understand your interpretation as how the report generates the details at present, but the accounting for sole traders is quite straightforward.

For sole traders the accounting year end is advised to HMRC and from that time the accounts are presented/calculated to/by the revenue for the tax year within which those accounts occur.

The apportioning of profit/loss to different tax rates is not relevant as the accounting year has been delegated to a particular tax year.

I would suggest this could have a simple fix as all is required is the Y/E for Sole Trader accounts are linked to the tax year within which they fall and so the bandings/rates are calculated on that basis and not apportioned over two tax years.

Is there anywhere else I can add capital allowances / AIA then, since the tax summary was your recommended place to do it?

Hi @cjdshaw

The only way to add this at the moment would be as a deduction. There are details of this in the post you linked to, but please let me know if you need any help.

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