(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
| £ | |
|---|---|
| September to October 2020 (two months) | 4,000 |
| November 2020 to March 2021 (five months) | 3,000 |
| April to September 2021 (six months) | 6,000 |
| October 2021 onwards | 10,000 |
If Miza adopts a 31 May year end, what will be his taxable trading profit for the first two tax years of trading?