Taxation of the unincorporated business for ATX (UK) - part 3: self-test

Test your understanding

(1). Nora began trading on 1 May 2020. Her first few months of trading were very profitable but since then her monthly profits have been gradually falling.

Explain the relevance of this information to Nora’s choice of year end.

(2). Mizo began trading on 1 September 2020. His tax adjusted profits per month are set out below

If Miza adopts a 31 May year end, what will be his taxable trading profit for the first two tax years of trading?

Answers