Share this content
8

Coronavirus support

Change of Accounting Date and transitional overlap profit relief - effect on average of 3 years

Didn't find your answer?

Having had a dismal year, a client, upon my advice, changed his year-end from 30 April to 31 March and was assessed to 23 months profits LESS the overlap profit. This worked out quite well, especially as he is retiring 'in a few years' but hasn't quite decided when. How will his grant be calculated? I expect HMRC will take the net figure, unfortunately. Anyone with any idea?

Replies (8)

Please login or register to join the discussion.

RLI
By lionofludesch
01st Apr 2020 10:59

I agree.

Thanks (0)
By Duggimon
01st Apr 2020 11:12

It will almost certainly be the self employed income figure from his tax return.

Thanks (2)
Replying to Duggimon:
avatar
By sammerchant
02nd Apr 2020 09:28

Hindsight would have been very helpful. The taxpayer suffers a double whammy - the relief is not index-linked and he loses out on the grant. Our tax system really needs reform. But, please, not the OTS! They are ineffective, to put it mildly.

Thanks (0)
Replying to Duggimon:
avatar
By sammerchant
02nd Apr 2020 09:28

Hindsight would have been very helpful. The taxpayer suffers a double whammy - the relief is not index-linked and he loses out on the grant. Our tax system really needs reform. But, please, not the OTS! They are ineffective, to put it mildly.

Thanks (0)
Replying to Duggimon:
avatar
By sammerchant
02nd Apr 2020 09:29

That's what I figured. Hindsight would have been very helpful. The taxpayer suffers a double whammy - the relief is not index-linked and he loses out on the grant. Our tax system really needs reform. But, please, not the OTS! They are ineffective, to put it mildly.

Thanks (0)
Replying to sammerchant:
By Duggimon
02nd Apr 2020 09:35

I'm not sure what you're proposing as an alternative means for determining the grant amount but it would almost definitely be impossible to deliver by June.

Thanks (0)
Replying to Duggimon:
avatar
By sammerchant
02nd Apr 2020 12:00

I thought the relief would have been treated the same way as the Personal Allowance, and ignored, just as I would expect relief for Gift Aid/Pension contributions etc to be dealt with.

Thanks (0)
avatar
By sammerchant
02nd Apr 2020 09:33

I really must learn how to delete my duplicated comments! Sorry to all.

Thanks (0)
Share this content

Related posts