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
-
HMRC reminds employers about payrolling benefits deadlines
HMRC is reminding employers of key dates and preparations ahead of the transition to real-time payrolling of benefits in kind (BiKs). With an important voluntary registration deadline approaching, what do payroll teams need to know?
-
Why do frozen mileage rates affect VAT?
Your business pays a fixed mileage allowance to staff who use their private cars for business travel. The rates published by HMRC have been frozen since 2011 but is this relevant to determine how much input tax you can claim on the payments?
-
HMRC restarts direct recovery of tax debts from bank accounts
HMRC has resumed use of its Direct Recovery of Debts (DRD) powers, enabling it to recover unpaid tax directly from the bank accounts of businesses and individuals who have ignored repeated attempts to settle outstanding liabilities. What does this mean in practice for business owners and directors?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.