Taxation of Business Profits: Quick Facts

If a person is in business as either a sole trader or a partnership, they must register for Self Assessment with HM Revenue and Customs (HMRC) and notify details of business income using the Self Assessment return. Self Assessment: Self-employment Pages

Income derived from a trade, profession or vocation is taxed as trading income. Trading and Professional Income

The period for which accounts are prepared is known as the accounting period and the date to which the accounts are prepared is known as the accounting date. Accounting Periods

Accounts are normally prepared on the accruals basis, but businesses with turnover below £150,000 can prepare accounts on the cash basis. Cash Basis