tax year overlap with becoming employed

11/01/2018 22:16:46
my accounting period runs from 1/5 to 31/4 each year.
So for my 2016-17 return I will be submitting accounts for the period between 1/5/2015 and 31/4/2016.

From 5/4/2017, I have taken up an employed position, which means for my 2017 to 2018 return, I will have a full years employment income to declare as well as 11 months of self employment income to declare (1/5/2016 to 31/4/2017), resulting in a disproportionate tax bill.

Is there a better way to do this? Maybe by changing my accounting period. Any advice appreciated. I haven't got an accountant and usually make my own submissions.

Re:tax year overlap with becoming employed

12/01/2018 11:04:15
Hello Hamlap

Please see the following regarding changing accounting periods, and cessation of a trade in respects to overlap relief (if you report the income as per the dates shown, without changing your accounting dates). The link only shows the details for 16/17 as this is the current tax year we are dealing with.