CAT / FIA FTX Syllabus B. Adjusted Profit / Loss Computations - Basis of assessment - Notes ^{1 / 1}

A tax year runs from 6 April to 5 April.

The current tax year 2023/24 runs from 6 April 2023 to 5 April 2024.

Until the previous tax year (22/23), the basis of assessment for a sole trader was the taxable trade profits (self-employed income) for a 12 month period of account ending in a tax year. 

e.g. profits for the year ended 30/6/22 were taxed in the tax year 22/23.

From the next tax year onwards (24/25), profits will be taxed on a tax year basis. 

This means that trading profits from the 6/4/24 until 5/4/25 will be taxed in 24/25.

For the current tax year (23/24), there are special transitional rules that apply. 

But these rules are NOT EXAMINABLE for the FTX exam. 

So in the exam, a question involving calculation of assessable profits for a tax year will always have an accounting period ending on 31/3 or 5/4.