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Change to how taxable profits are calculated for sole traders and partnerships

The way HMRC assesses your profits if you’re a sole trader or a partnership that uses an accounting date between 6 April and 30 March is changing. This change will not affect companies.

Your accounting date is the last day of the period that you prepare your accounts for. You choose your accounting date and will normally make your accounts up to that date every year.

If your accounting date is between 31 March and 5 April this change will not affect you.

From 6 April 2024 you will be assessed on your profits for each tax year that runs from 6 April to 5 April. This change will affect how you fill in your tax return if you use an accounting date between 6 April and 30 March.

There will be a transition year from 6 April 2023 to 5 April 2024, to allow any overlap relief that you may be due to be used against your profits for that tax year.

For further information please select the following link How HMRC assesses profits for some sole traders and partnerships to change - GOV.UK (www.gov.uk)
 


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