if I start a new business this week, what will be my basis and accounting periods? will it matter?
I am sole trader and want to start business this week (week of 9th of March), and preferably starting tomorrow. What will be my basis period and accounting period? I don’t understand what those really are and why I should be concerned about them. Can I just start trading whenever I want and let the accountant worry about the accounting periods? Thanks in advance
Your first year of trading (to 10/03/10) will include the 2008/09 basis period (11/03/09-05/04/09).
The 2009/10 assessment will be on the first full year to 10/03/10.
2010/11 will be y/e 10/03/11.
Overlap relief will cover the double tax on the first year.
It doesn’t make ANY difference, but it’s more convenient to start on 06/04/09 as it saves overlap.
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October 26th, 2009 at 9:59 am
You can start the business immediately now, do not worry about the accounting period. The accounting period for the first year may less than 12 months (e.g. Apr- Des – is 9 month), and the following year will be full 12 month according to calender year. If you prefer you can choose accounting period differ from calendar, that means April – March, but it will more complicated. The first one is more simple.
But the most important things to do is you have to register yr company to get the NPWP (Tax Identification Number).
References :
October 26th, 2009 at 10:22 am
Your first year of trading (to 10/03/10) will include the 2008/09 basis period (11/03/09-05/04/09).
The 2009/10 assessment will be on the first full year to 10/03/10.
2010/11 will be y/e 10/03/11.
Overlap relief will cover the double tax on the first year.
It doesn’t make ANY difference, but it’s more convenient to start on 06/04/09 as it saves overlap.
References :
Accountant 40 years