I was looking through HMRC’s autumn Budget 2021 tax-related documents to check for matters that may affect my clients. The most wide-ranging measure is the reform of the basis period for assessing profits from self-employment.
The department’s notes say: ‘On transition to the tax year basis in the tax year 2023-24 all businesses’ basis periods will be aligned to the tax year and all outstanding overlap relief given.’ I realise that this is still some way in the future but I wondered whether there were any basic tax-planning measures or income and payment timing issues that should be considered in advance. I am thinking in particular about matters that could affect the tax-efficient use of the overlap relief and other allowances. It occurred to me that this might be something worth thinking about before 2023 and I look forward to thoughts from readers.
Query 19 849 – Overlord....
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