UKI Compliance Ideas Portal

Income Averaging (farming)

To use averaging you have to be trading over 2-5 years to adopt the usage. However, if you have a client who has been trading over this time but you are completing the first set of accounts i.e no previous data on your sage tax, then the averaging cannot be used unless you enter the last 2-5 years worth of information. It becomes an even bigger issue as on set up, you set up the client with the accounting period you are about t complete. In business tax you then cannot add previous years, you have to delete and restart. So this is a massive amount of time for accounts/tax to enter the past information as well ad admin time to re do all of the set up. If there was a way to over ride the averaging when its the first year completing but the commencement date is over 2- 5 year ago, this would be very helpful.

  • Steven Tuckwell
  • May 7 2024
  • We're Taking A Look At This