The following case study illustrates the (short) life cycle of a business that has no change of accounting date.

Philip starts in business as a freelance violinist, with all his income assessed as self-employed income. The business starts on 1 December 2014 and he draws his first accounts up to 30 April 2015, with annual accounts thereafter. He is offered an employee role for an orchestra from 1 February 2021 and ceases self-employment from 31 January 2021, drawing up a shorter period of accounts to cover his final period of trading.

His profits for the periods in question are as follows:

Accounts

Profits

£

1/12/14–30/4/15

 8,000

1/5/15–30/4/16

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