HMRC have asked that requests for overlap information be submitted by 31 December 2024, to help them manage the volume of requests ahead of the 2023-24 submission deadline on 31 January 2025.
From 2024-25, under the Basis period reform, all unincorporated businesses will be taxed on their profit or loss arising in the tax year, regardless of their accounting period end date.
- To arrive at this position, 2023-24 is a Transitional year for businesses whose year-end is not from 31 March to 5 April.
- In 2023-24 businesses will be taxed on the:
- Profits for the accounting period ending in the tax year,
- Plus the transitional profits, from the end of the above period to 5 April 2024.
- Taxpayers may deduct any overlap relief b/fwd from the transitional profits.
- HMRC have provided an Online service, which can be used to request the Overlap relief figure.
HMRC has asked agents and taxpayers:
- To submit requests for overlap information by 31 December 2024, to help them manage the volume of requests ahead of the 2023-24 submission deadline on 31 January 2025.
- Not to contact them to chase a request or check figures already held. It is possible to check the request status using HMRC’s Where’s my reply tool.
Useful guides on this topic
Basis Period reform: At a glance
Basis reform: how it works and with Q&A. 2023-24 is a transitional year. All unincorporated (self-employed) businesses will be calculating their profit or loss arising up to 5 April 2024 regardless of their accounting end date.
Basis Period reform
What is basis period reform? Who is affected? What is the new basis year for tax? What are the transitional rules?
Accounting periods and tax basis periods
Which date do I choose? Does it matter? Can I change my accounting date? What changes are proposed as a result of the reform of basis periods?
Basis period reform: What could it mean for MTD?
Proposed changes to the basis period rules, which are currently being consulted on, could result in some self-employed businesses being mandated into Making Tax Digital for Income Tax sooner than expected.
