Basis Period Reform – an update

Although the mandation of Making Tax Digital for Income Tax Self Assessment (MTD ITSA) has been delayed, basis period reform will continue as originally planned. For unincorporated businesses which do not have a 31 March or 5 April accounting year end, this means that the established rule for the taxation of trading income, called ‘current year basis’, will be replaced with a new ‘tax year basis’ going forward. The change will take effect from the 2024/25 tax year, with 2023/24 being a transitional year.
In this webinar, we considered the impact of basis period reform and explored some of the practical issues to be thinking about when discussing with clients who may be affected.

Key themes and topics
• Impact for clients affected by basis period reform for the 2023/24 tax year
• Spreading of transitional profits and election to accelerate transitional profits
• Impact of basis period reform for taxpayers who are members of a partnership
• Interaction of basis period reform with self assessment payments on account
• Consideration of non tax implications of basis period reform

Speakers
• Host: Chris Campbell CA CTA, Head of Tax (Tax Practice and Owner Managed Business Taxes)
• Thomas Brown, Senior Policy Adviser, Small Business and Trading Policy Team, HMRC

Counts as CPD activity
Depending upon your individual role and training and development needs, watching this webinar on-demand can count towards your annual Continuing Professional Development (CPD) requirement.

Disclaimer
Please note that views and opinions expressed by speakers at ICAS webinars are their own and not necessarily reflective of ICAS’ views.