HMRC has been consulting on a proposed reform to the current basis period method for taxation, which apply to unincorporated businesses and LLPs. They have drafted legislation and consulted on the proposed amendments. It is expected that the reforms will be fully effective from the 24/25 tax year, with 23/24 being a transition year.
How will this affect your business and tax affairs?
These changes will affect all sole traders, unincorporated partnerships and LLPs who currently do not prepare their annual accounts to a reference date ending between 31 March and 5 April.
See here our latest basis period reforms brochure.