From 6 April 2024, the self-employed, including partnerships, will have to pay tax on the profits they earn for the tax year (the tax year basis) rather than on the profits of a period of account ending in the tax year. Businesses that do not draw up accounts to a date between 31 March and 5 April may have to make an apportionment to identify the profits arising in the tax year. These figures may be taken from sets of accounts that are drawn up after the end of the tax year.
HMRC has prepared a technical paper and is seeking feedback on the administrative burdens of submitting and amending provisional figures, but it is not looking for comments on specific methods of estimation, or changes to the core basis period reform policy.
HMRC is also interested in understanding the specific issues that partnerships may face when partners submit provisional figures in the returns, and the impacts of introducing additional specific easements for partnerships, including the idea of ‘bulk amendments’ of partner tax returns to correct provisional figures.
From 6 April 2024, the self-employed, including partnerships, will have to pay tax on the profits they earn for the tax year (the tax year basis) rather than on the profits of a period of account ending in the tax year. Businesses that do not draw up accounts to a date between 31 March and 5 April may have to make an apportionment to identify the profits arising in the tax year. These figures may be taken from sets of accounts that are drawn up after the end of the tax year.
HMRC has prepared a technical paper and is seeking feedback on the administrative burdens of submitting and amending provisional figures, but it is not looking for comments on specific methods of estimation, or changes to the core basis period reform policy.
HMRC is also interested in understanding the specific issues that partnerships may face when partners submit provisional figures in the returns, and the impacts of introducing additional specific easements for partnerships, including the idea of ‘bulk amendments’ of partner tax returns to correct provisional figures.
