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Trading expenses

Prior to the end of the year, it may be possible to consider the timing of significant items of income or expenditure. There are two potential advantages in bringing expenditure forward into an earlier tax year:

1. •

   tax relief is received at the earliest opportunity

2. •

   relief may be received at a higher rate

These are essentially two different points, but they should be considered at the same time.

It is difficult to accurately predict profits a year in advance, but it may be possible to estimate which rate the taxpayer will fall in. In some cases, there may be specific