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
-
How much will you save with reduced scale charges?
HMRC has reduced the VAT fuel scale charge by nearly 6% for company-provided cars. When does the new reduced rate take effect and how do you make the calculations?
-
Avoid the trading allowance trap
In late 2024 you became self-employed. You’re now completing your tax return for 2024/25 and will claim the trading allowance instead of a tax deduction for business expenses. Could this impact your NI record and state pension entitlement?
-
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?
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.