2024 Tax Return with Overlap Relief

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I'm moving on to 2024 Tax Returns. If a client has a 30/04 year end then it seems to be 01/05/2022 to 30/04/2023 + 01/05/2023 to 05/04/2024 less overlap relief. It looks as if we only do one P & L section within the tax return even although it exceeds 18 months. The question is - what do we enter for Balance Sheet - is it drawn up to 30/04/2023 or 05/04/2024. If it's 30/04/2023 then the P & L A/C won't link up.

If the Balance Sheet date is 05/04/2024 then it's like we've changed the year end date. 

 

Replies (18)

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RLI
By lionofludesch
12th Feb 2024 10:33

You can fill in more than one self employment page if it suits you.

It's what I did when I changed year end to 31 March.

Use the Adjustment to Profits box to eliminate the profit from one form and transfer it to the other.

But if you're going to amalgamate, obviously the balance sheet needs to be the one at the end of the period.

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Replying to lionofludesch:
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By Ardeninian
12th Feb 2024 16:17

+1

One SA103 for each accounting period. Latest period you are filing should be on the main page, the other(s) included as an attachment. Balance sheet should match the P&L - though I never understand why anyone files one.

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By Tax Dragon
12th Feb 2024 10:40

Have you seen a proforma 2024 tax return?

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Replying to Tax Dragon:
RLI
By lionofludesch
12th Feb 2024 10:43

Tax Dragon wrote:

Have you seen a proforma 2024 tax return?

Do you think there'll be a significant difference?

Genuine question. Presumably the overlap carried forward box will be no more but do we need any other change?

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Replying to lionofludesch:
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By AdamJones82
12th Feb 2024 12:19

An adjustment box for those wishing to spread additional liability for over up to 5 years?

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Replying to AdamJones82:
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By lionofludesch
12th Feb 2024 13:04

AdamJones82 wrote:

An adjustment box for those wishing to spread additional liability for over up to 5 years?

Well spotted !!

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Replying to lionofludesch:
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By Tax Dragon
12th Feb 2024 17:02

I confess I thought OP('s client) was proposing to keep 30 April year end - which would be an entirely acceptable thing to do.

But rereading I now think OP is saying otherwise.

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Replying to Tax Dragon:
RLI
By lionofludesch
12th Feb 2024 17:52

Tax Dragon wrote:

I confess I thought OP('s client) was proposing to keep 30 April year end - which would be an entirely acceptable thing to do.

But rereading I now think OP is saying otherwise.

Perfectly possible to retain an accounting date early in the tax year.

But I'd need a very good reason to do so after 5 April 2024.

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Replying to lionofludesch:
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By Tax Dragon
13th Feb 2024 06:04

Yeah but you're just expressing an opinion. I was explaining why I had misunderstood your answer.

On you opinion, the large majority of our unincorporateds are switching to 31.3/5.4. But not all. Those that aren't have reasons not to.

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Replying to Tax Dragon:
RLI
By lionofludesch
13th Feb 2024 07:15

Tax Dragon wrote:

Yeah but you're just expressing an opinion. I was explaining why I had misunderstood your answer.

On you opinion, the large majority of our unincorporateds are switching to 31.3/5.4. But not all. Those that aren't have reasons not to.

Quite true.

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By Matrix
12th Feb 2024 18:24

AdamJones82 wrote:

An adjustment box for those wishing to spread additional liability for over up to 5 years?

It is automatic so I would expect a box to elect not to spread.

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By Tax Dragon
13th Feb 2024 06:07

Yes, there ought to be several new boxes consequent to the changes.

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By Tax Dragon
13th Feb 2024 06:07

.

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By FactChecker
13th Feb 2024 11:02

Logically so ... but to answer your earlier question ("Have you seen a proforma 2024 tax return?") - No, and not expected imminently.

The most recent 'updates' for Developers (within the last month) are: "Tax and NIC calculation version 2.0.0a has replaced Tax and NIC calculation version 1.4.0a and MTR Test Case Generator (Tester) version 2.0.0 has replaced MTR Test Case Generator (Tester) version 1.4.1."
... well you asked!

But the timeliness of information issued to developers (along with any coherent overview of a full specification) has joined the queue of activities - like telephone support - in edging slowly towards the exit.
And, based on other returns, HMRC have started to believe their own mantra (about 'everything digital') to the extent that any draft 'forms' are seen as an unimportant nice-to-have .. shovelled out at the last possible moment, even after any sane developer hopes they've finished coding!

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Replying to FactChecker:
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By AdamJones82
13th Feb 2024 12:55

I can create a 2024 tax return in Iris Elements now and see the data entry boxes for self-employment reflecting the transition year

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By FactChecker
13th Feb 2024 13:12

Lucky you ... although there's no guarantee that nothing will change before you're actually allowed to submit.

FWIW I was merely responding to TD's question regarding whether there was yet an official/approved version of the 'form' (and thus what new questions will be asked and what new data items will be available - whether required or optional).

If you know differently, please share with everyone.

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Replying to FactChecker:
RLI
By lionofludesch
13th Feb 2024 14:39

FactChecker wrote:

Lucky you ... although there's no guarantee that nothing will change before you're actually allowed to submit.

FWIW I was merely responding to TD's question regarding whether there was yet an official/approved version of the 'form' (and thus what new questions will be asked and what new data items will be available - whether required or optional).

If you know differently, please share with everyone.

I looked - 2023 is the latest set of forms available.

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By FactChecker
13th Feb 2024 16:06

... which is exactly where I entered the fray (as an answer to TD).

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