Overlap relief calculator launched
An interactive tool has been launched to help taxpayers calculate the overlap relief to report on their 2023/24 self-assessment tax returns. What’s the full story?
The 2023/24 self-assessment tax returns need to be filed by 31 January 2025, but, for partners and sole traders a little extra work may be necessary. Any overlap relief brought forward from earlier periods must be relieved in 2023/24 as this is the year that trading profits move from being assessed on basis periods to align with the tax year from 2024/25. Overlap relief was created in the early days of trading, where profits were taxed twice if the business drew accounts to a date other than 31 March/5April.
Retrieving the figure to use should be straightforward for most as, ordinarily, the overlap relief figure will be shown as overlap profit carried forward on previous tax returns. However, if not, the individual or their agent can use HMRC’s new online tool to work out their overlap relief figure.
HMRC may be able to provide the overlap relief figure if required but has requested that taxpayers and agents do so by 31 December 2024 to help it manage demand.
Related Topics
-
Time off for fertility treatment?
A survey by Fertility Matters at Work has revealed that more than one-third of employees undergoing fertility treatment have resigned or are considering resigning because of the physical and emotional toll. Is there a right to time off for fertility treatment?
-
Was a company buyback of EIS shares tax avoidance?
Two taxpayers used the “purchase of own shares” procedure to extract gains they’d made from enterprise investment scheme (EIS) shares. HMRC said this was unfair tax avoidance, the taxpayers disagreed. What did the Upper Tribunal decide?
-
HMRC’s new compliance check service
HMRC has published a collection of videos and notes to help if you’re picked for a compliance check. Is HMRC’s new service worth a look or is it just official propaganda?