Basis Period Reform

• In the current reporting year, 23-24, self-employed individuals and partnerships are required to move their year ends in line with the tax year end, 5 April.
• This will only affect those whose accounting year ends are different from HMRC tax year end. For example, you may have an accounting year end 31 July 2023, and profits will now be calculated from August 2022 to 5 April 2024. HMRC apportionment will require an estimation for the period to 5 April 2024.
• The profit can be reduced by applying 'Overlap Relief', spread over the following tax years up to the tax year 2027-2028.

Do not worry - we bookkeepers will do all the calculations for you and will ensure we report accurate calculations for the next five years.