HMRC has taken on board a number of points proposed in response to the basis reform consultation, including on the use of provisional figures, and providing overlap relief figures:
HMRC is to take forward the option that would allow businesses to amend provisional figures to the normal time limits for amendments. This will effectively allow businesses and agents to amend provisional figures at the same time as the business’s following tax return. HMRC guidance is to be amended accordingly before the start of 2023/24.
For businesses looking to change their accounting date for 2021/22, HMRC will now be able to provide details of overlap relief figures or historic profit figures on request, if these figures are recorded in HMRC systems. Taxpayers should ring the HMRC self-assessment helpline and agents should ring the agent dedicated line (although it is not clear whether this would amount to a ‘complex’ query).
Businesses looking to change accounting dates or use overlap relief in 2022/23 or 2023/24 should wait until HMRC is able to provide further information on overlap relief support. HMRC is planning to provide certainty on this in the coming months.
HMRC is continuing to explore additional general communications for basis period reform to raise awareness. For unrepresented taxpayers, HMRC is also looking at providing specific and detailed support.
HMRC has taken on board a number of points proposed in response to the basis reform consultation, including on the use of provisional figures, and providing overlap relief figures:
HMRC is to take forward the option that would allow businesses to amend provisional figures to the normal time limits for amendments. This will effectively allow businesses and agents to amend provisional figures at the same time as the business’s following tax return. HMRC guidance is to be amended accordingly before the start of 2023/24.
For businesses looking to change their accounting date for 2021/22, HMRC will now be able to provide details of overlap relief figures or historic profit figures on request, if these figures are recorded in HMRC systems. Taxpayers should ring the HMRC self-assessment helpline and agents should ring the agent dedicated line (although it is not clear whether this would amount to a ‘complex’ query).
Businesses looking to change accounting dates or use overlap relief in 2022/23 or 2023/24 should wait until HMRC is able to provide further information on overlap relief support. HMRC is planning to provide certainty on this in the coming months.
HMRC is continuing to explore additional general communications for basis period reform to raise awareness. For unrepresented taxpayers, HMRC is also looking at providing specific and detailed support.
