Basis period reform - HMRC are writing to unrepresented taxpayers.

HMRC are writing to unrepresented taxpayers this week, advising the changes on the basis period reform and the support that is available should you be affected.

A copy of the letter can be found here.

This major change will affect sole traders and partnerships who's annual accounts are not drawn up to either 31 March or 5 April. The proposal will potentially show temporary increases to their tax bills; the change means you will need to report profits for your normal accounting period plus any profits up to 5 April 2024. There will be support available - 'overlap relief' which can help reduce the extra profits.

For more information please visit:

https://www.gov.uk/government/publications/income-tax-basis-period-reform/income-tax-basis-period-reform