Kevin Read takes solace in classic soul music as he considers a change in accounting date prior to the introduction of the tax year basis of assessment.
Most unincorporated businesses that do not have a 31 March or 5 April year end should be encouraged to change their accounting date before 2024/25, when the new ‘tax year’ basis for assessing profits will be in place.
If they do not, their future tax returns are going to require the apportionment of profits from two different accounting periods, probably with estimated figures (that will require subsequent adjustment) being used from the latter period.
Many small practitioners have clients who are partners in large professional firms. These firms may decide to stick with their existing year end (which is often 31 December, particularly if the firm trades internationally), so ongoing apportionments will remain likely for such clients.>