Basis period reform - easement for provisional figures

HMRC has provided updates on basis period reform. They cover easements for provisional figures provision of overlap relief figures and HMRC’s communications strategy and are summarised below.

HMRC has decided to allow businesses to amend provisional figures to the normal time limits for amendments. This will in effect allow businesses and agents to amend provisional figures at the same time as the business’s following tax return.

For businesses looking to change their accounting date in the 2021-22 tax year HMRC will now be able to provide details of overlap relief figures or historic profit figures on request if these figures are recorded in HMRC systems. Taxpayers should ring the HMRC self-assessment helpline and agents should ring the agent dedicated line.

Businesses wishing to change accounting dates or use overlap relief in 2022-23 or 2023-24 should wait until HMRC is able to provide further information on overlap relief support.

HMRC is...