New basis period
 
The basis period is subject to reform for sole traders and partnerships with HMRC requiring the taxable profits to be on a tax year basis. This episode looks at the new rules, how they will be applied, the problem areas and how the transition will be applied in 2023/24.
 
We look at the issues unique to 2023/24 including overlap relief and the spreading provisions.
 
Our guest is Emma Rawson. Emma is a Technical Officer with ATT. In that role Emma has been involved in discussions, meetings and representations to HMRC on the basis period change, making Emma a perfect guest for the subject. Emma is a freelance CPD trainer and tax author and can be contacted at erawson@att.org.uk
 
List of contents and timings
1:49      Introducing Emma Rawson
2:52      Key dates and who is affected by basis period reform
3:49      Does the taxpayer have to change their year end?
4:17      Example for 2023/24 transition year
5:11      Overlap relief and spreading provisions
5:55      How to find out the overlap data from HMRC
8:51      How to use the overlap relief
9:37      Reporting on the 2023/24 tax return
10:22    Worked example for 2023/24
12:01    Treatment of losses
12:58    Accounting period more than 18 months
13:19    What if you have changed accounting date in previous 5 years?
14:20    Capital allowances
17:41    Problems changing the year end
18:39    What if neither you nor HMRC can determine the overlap?
20:14    Partnerships
21:45    Individual overlap relief in a partnership
22:17    LLPs
23:18    Problem sectors
23:41    Unrepresented taxpayers
24:26    Representations to HMRC
26:34    Student loans, payments on account, personal allowance tapering, high income child benefit,
             pension annual allowance
28:45    Provisional figures
30:12    Enquiry windows