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
-
Cutting the cost of a company car
You want to help your young son replace the ancient car he currently drives. The plan is for your company to buy it but for the running costs to be met by your son. That’s fine with him but is there a more tax and cost-effective alternative?
-
Meaning of “new and unused” clarified for CAs purposes
The guidance on what “new and unused” means for the purposes of first-year allowances has been updated in order to make things clearer. What’s the full story?
-
Scammers already targeting pensioners over winter fuel payments
Phishing attacks are already being sent to pensioners purporting to be from the Department for Work and Pensions (DWP). What’s going on and how can you avoid becoming a victim?
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.