Expansion of cash basis for unincorporated businesses

The government has published the summary of responses to a consultation on the cash basis alongside the Autumn Statement. This announces relaxations that will allow more businesses to use this basis of taxation from 6 April 2024. Self-employed business owners and partners with trading income currently calculate their taxable income for income tax purposes using […]

Overlap relief – new form to help with move to tax year basis

This summer HMRC plans to launch an online form to deal with requests regarding overlap relief and the administration of basis-period reform. Self-employed taxpayers with a year end other than 31 March or 5 April will be affected by the move to a tax year basis. They will need to establish any overlap relief available […]

ICAEW supportive of expanding cash basis for the self-employed

ICAEW’s Tax Faculty supports the extension of the cash basis, but warns that reliance on it could jeopardise the accuracy of accounting records kept by businesses. ICAEW’s Tax Faculty has responded to HMRC’s consultation on expanding the cash basis. The cash basis is an optional regime for self-employed individuals with turnover below £150,000 to calculate […]

Basis period reform: How to deal with estimated figures

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 […]