If you are a sole trader or partnership and your accounting year end is not 31 March or 5 April, you are going to be affected by a change in the way taxable business profits are calculated for a tax year.
If you operate your business through a limited company, of which you are a director, these changes will not affect you.
We have produced a guide to this topic which you can read here.
The issue is complex so please do contact us or your current advisor with your questions.
Questions may well include:
- Should you change your accounting date? If so, when should I change it?
- Will there be additional tax arising as a result of the change – how can I spread the cost?
- If I don’t change my accounting date, how will my taxable profit be calculated?
- What is the impact of estimated figures on my tax return?
- Should I consider the timing of my capital expenditure plans?
The change in basis period may significantly affect how and when your business profits are assessed for tax.
We are here to help you understand the options and impacts on your business, so please do get in touch.
Useful links: Basis Period Reform Policy PaperÂ
