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.