Self Assessment Basis Period Reform
Posted on 5th May 2023 by Joanne Stoneman
From 2024/25, all unincorporated businesses will have to report their profits using a tax year basis period.
From 2024/25, all unincorporated businesses will have to report their profits using a tax year basis period.
As detailed in my previous blogs, any businesses with year ends other than 31/3 or 5/4, will have to account for additional transitional profits, and will have additional tax liabilities. To reduce liabilities businesses can utilise the overlap profits from the first year of self-assessment.
Many traders and advisors won’t have records of the overlap profits, so HMRC has announced that it is developing a new online form for requesting any information it holds regarding the figures. If the overlap relief carrying forward has never been recorded on the tax return, you’ll have to work it out from your profits instead. Don’t leave this until the last minute, as the relief will be lost if it is not claimed prior to 2024/25.