Basis Period Reform

Firms need to look strategically at the information they will be providing to partners, what it will be based on, the timeline and how the cashflow required for 31 January 2025 and beyond will be managed.

Currently, taxable profits are based on the accounting period ending in the tax year.

Going forward, taxable profits will be based on the year ending 5 April.

The 2023/24 tax year, the transitional year, will be based on the period from the end of the accounting period ending in 2022/23 to the 5 April 2024, less any overlap profits brought forward.