![]() ![]() ![]() 1 October 2026 to 30 September 2027, showing profit of £75,000.1 October 2025 to 30 September 2026, showing profit of £45,000.Example of how to apportion by daysĪ business starts trading on 1 October 2025. When a tax year end falls in a leap year, you should use 366 rather than 365 when working out your taxable profit. For example, you can apportion by months or weeks. You can use another method if it is reasonable, and you use it consistently. The normal method of apportioning profits is by looking at the number of days in each of the periods in the tax year. the start of your new business year to 5 April the following yearįor example, if you have an accounting year end date of 31 December, you will report profit from both:.6 April up to your business account year end date.If not, you need to report parts of the profit from 2 sets of accounts. If you have an accounting year end date that is between 31 March and 5 April, put the figures from these accounts in your return as normal. You need to report the profits you earned during the tax year the return relates to (6 April to the following 5 April). This means you can report those profits without apportioning for the 5 days after 31 March. If your business accounting year ends on or between 31 March to 4 April, you can treat your accounting year as if it ends on 5 April. If you have an accounting date between 31 March and 4 April We will publish guidance soon on how to complete these steps. Include your overall transition profit and Overlap Relief in your 2023 to 2024 Self Assessment tax return. You will need to complete the following steps. ![]() This can be reduced by Overlap Relief and any remaining profit will be spread over the following years, up to the tax year 2027 to 2028. If you report profit covering more than 12 months, the excess is known as ‘transition profit’. may need to apportion 2 sets of accounts to estimate your profits for the yearįor example, if you have an accounting year end date of 31 December 2022, you will report profit from 1 January 2023 to 5 April 2024 in the 2023 to 2024 tax year.will report profits covering more than one year.In your Self Assessment tax return, you will need to report profit from the day after your accounting year end in 2022 to 2023, up to 5 April 2024. The 2023 to 2024 tax year is known as the ‘transition year’. If your accounting year end is not on or between 31 March to 5 April, your profits may need to be apportioned between accounting periods.Īpportionment is the way you work out your profits for a tax year by splitting profits from more than one set of accounts. This means you will need to report profit up to the tax year end, even if your accounting year ends at a different time. This means you reported profits according to your business accounting year end date within the relevant tax year (between 31 March to 5 April the following year).įor example, if your accounting year end date was 31 December 2022, you will have reported profits on your 2022 to 2023 return for the whole year (1 January 2022 to 31 December 2022).įrom 6 April 2023, the new tax year basis applies. Up to 5 April 2023, the basis period reporting rules applied. ![]() If you are affected, you will need to change the way you complete your Self Assessment tax return from the 2023 to 2024 tax year. You will not be affected if you are an employee or company director. If either of these do not apply, you will not need to do anything differently.
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