Question 1

SCENARIO: Apex Consulting LLP is a management consulting firm. The partnership prepares accounts to 31 December each year. On 1 July 2023, a new partner, Beatrice, joined the partnership. Her share of the partnership profits for the year ended 31 December 2023 was £48,000. Prior to joining, Beatrice incurred £2,000 of training costs relevant to her new role. The partnership is considering changing its accounting date to 31 March.

QUESTION: What is Beatrice's basis period for her first tax year (2023/24)?

Accepted Answer

Apply the opening year rules for a new partner/sole trader. The first tax year is always from the start date to 5 April.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Assuming the basis period ends on the partnership's accounting date (31 Dec).

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 6

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