A U.S perspective

[Rat Catcher]

Depends on your year end. Welfare will be taxed in 2020 regardless.

[dalymount]

Yes I know that, but your welfare earnings are not going to be as high as your work earnings, so we should be paying less in respect of the year you mention

[Rat Catcher]

Not necessarily. If, for example, your year end is 24th February your tax bill for 2020 will include your profit for the year ended 24th February 2020 and any social welfare received in the calendar year. In that case, all other things being equal, your tax bill for 2020 will be significantly increased.

[dalymount]

I thought all financial years begin on Jan 1st,and end on dec31 at ?

[Rat Catcher]

No, you can draw your accounts up to any date of your choosing. However, by convention accounts are generally drawn up to the last day of a month so the example above (24th Feb) would be unusual though not impossible. In general, now that the tax year runs to Dec 31st the most efficient date would be Jan 31st (observing the aforementioned convention), previously April 30th was by far the most common year end date as the tax year ran to 5th April.

You can also change your accounting date to maximise taxation efficiency. That's something that a lot of men may want to consider now that we know COVID '19 welfare is taxable.

[dalymount]

Glad I know fukk all about such matters. All I do is keep receipts, and a chosen day , usually around Aug/ Sept I ring my accountant and arrange to bring my stuff up to him , he does the bizzo, and calls me when he's done about a week later

[Rat Catcher]

You could be in for a nasty shock for 2020 with all that dole.

[dalymount]

Can't see how. If my file money is less then I would be getting for working, then I faul to see how I could pay more tax. Even if I do, I don't give a fukk, caus money is not my God

[Rat Catcher]

As above, it depends on your year end. If you don't know when that is you don't know what to expect.