Understanding basis period reform

Overview

Part 4 of Finance Act 2022 sets out how the profits of self-employed sole traders and partners in a partnership will be taxed from 2024/25. This will result in a number of changes to the legislation – including abolishing the well-known term ‘basis period’.

The changes mean that the profits will be taxed on a tax-year basis – ie to the end of 5 April instead of the profits for the 12 months to the accounting date in the tax year. From 2024/25, taxable profits will be based on time-apportioned profits of the accounting periods that fall within the tax year.

This webinar will looking at the practicalities of basis period reform – what the changes will be, who it affects, and the transitional rules.

Paul Soper FCCA, lecturer, consultant and broadcaster

Paul qualified with Stoy Hayward and has since been both a partner in a small firm and sole practitioner and is now a consultant and lecturer on taxation issues focusing mainly on small practitioners and has presented extensively for firmsboth large and small as well as the ACCA, the ICAEW District Societies and the CIOT.