"Basis Period Reform: Key Point for 2023/24"

From 6 April 2024, unincorporated businesses will switch to the "tax year basis" for calculating trading profits for income tax, replacing the "current year" basis. This affects sole traders and individual partners but not companies. The 2023/24 tax year is a transitional period with special rules and potential overlap relief. This reform simplifies tax alignment but may require provisional figures if accounts aren't finalised.

For further information, please contact Mitchells.