Kevin Read explains the planned changes to the use of estimated figures as we move to a ‘tax year’ basis of assessment for unincorporated businesses and LLPs.
The switch to a ‘tax year’ basis of assessment grows ever closer. On 6 April 2023, we entered the transition year, which will impact businesses that do not already have a 5 April or 31 March year end.
Under the new system of assessment, applicable for 2024/25 onwards, tax compliance will be much more time-consuming for businesses with year ends other than 31 March or 5 April.
Example
Fred makes up accounts to 31 December each year. When filing his tax return for 2024/25, he will need to assess the profits arising between 6 April 2024 and 5 April 2025. This will involve apportioning two accounting periods on a day-count basis (y/e 31 December 2024 and y/e 31 December 2025), assuming he
