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Ch-Ch-Ch-Ch Changes!

Shared from Tax Insider: Ch-Ch-Ch-Ch Changes!
By Kevin Read, June 2022

Kevin Read looks at some hazards to avoid for a sole trader changing accounting date in the tax year 2023/24. 

In a previous article, I discussed some of the issues arising from changing accounting date to 5 April before the new ‘tax year’ basis of assessment comes in for 2024/25. Below, I expand on these matters with a practical case study. 

Case study: Laura the golfing plumber 

Laura is a self-employed plumber and keen golfer. Her annual profits before capital allowances are £59,000, which accrue at a rate of £2,000 per month from April to August (when she plays a lot of golf) and £7,000 per month for the other seven months of the year. She has negligible other income. 

She has a December year end, and in the transition year to the new basis of assessment (2023/24), Laura decides to change her accounting date to 31 March (which the new

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