We have a client who has ceased self-employment in 2019/20, and I'm trying to establish if there are any overlap profits. Nothing on our files, but HMRC have been kind enough to send me extracts of the 96/7 ands 97/8 SATRs.
96/7 has a two year basis period, adjusted on a straight time apportionment to arrive at the profits. It also indicates S/E commenced prior to 6 April 1994.
Self-assessment was introduced in 95/6, but there is no 95/6 record for the client.
However, I seem to remember some adjustment of basis periods on the introduction of self-assessment, but for the life of me I can't remember any of the details.
In this case, I would have expected there to be a 95/6 SATR, and possibly any overlap was calculated on earlier (pre-SA) Returns, in which case details are lost in the midsts of time. However, it still leaves me with a nagging feeling that profits for the year ended (in this case) 31 August '95 have never been assessed, but this is subject to my question.
Can anyone remember what happened on the switch to self-assessment?