The fiscal year basis of taxation, applying from 2024/25, could mean unincorporated businesses that are unable to have an accounting date that matches the tax year will have to use estimated figures in their tax returns. How will this work and what are the penalty implications?
The basis period reform transition year of 2023/24 is almost upon us. During that year, businesses must claim all remaining overlap relief, regardless of whether they are changing their accounting date to coincide with the tax year.
Beyond the transition period, unincorporated businesses that do not have an accounting date that coincides with the end of the tax year may have to use estimated figures in their tax returns. This could be quite a challenge.
Join ICAEW’s Tax Faculty for a webinar that will cover:
- the use of estimates in preparing tax computations encompassing multiple accounting periods and the penalty position when those estimates are subsequently corrected;
- the latest guidance on requesting overlap profit information from HMRC;
- an update on the work HMRC is doing to update tax returns and filing processes in advance of the change; and
- methods that HMRC is using to publicise the upcoming changes with agents and businesses.
The one-hour webinar at 12:00 on 2 March will be presented by Thomas Brown of HMRC and Richard Jones of ICAEW’s Tax Faculty.
Find more Tax Faculty resources on basis period reform:
ICAEW’s Tax Faculty is recognised internationally as a leading authority and source of expertise on taxation. The faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.