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Making tax digital - Losing overlap relief??

Will the self employed lose their overlap relief when HMRC switch to MTD?

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Hi

I read somewhere a while ago that the self employed would lose their overlap relief when HMRC go MTD. I have researched the specific topic but can now not find any reference to this anywhere.

Did I dream it I am begining to wonder?  If it is the case then should we change those clients that do not have a 31st March year end to 31/3 so as to bring them in line for April 2018?

If it was a sobering dream and is not the case then how is this going to work for those clients that say, have a 31st October year end?

Thanks for any feedback in advance.

 

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RLI
By lionofludesch
08th Mar 2017 18:29

Yeah you did.

Available on cessation only was the proposed change - which completely goes against its original purpose of ensuring that twelve months profits are taxed in each tax year - years of commencement and cessation excepted, of course.

However, most folk will be changing their year ends to 31 March anyway to delay adopting MTD.

Still - who knows what further changes will come as the bill passes through Parliament?

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Replying to lionofludesch:
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By gbolton
09th Mar 2017 12:56

So we will all be killing ourselves in April, July, October and January and have our feet up for the remaining 8 months!

Small practices will not be able to cope.

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Replying to gbolton:
RLI
By lionofludesch
09th Mar 2017 13:58

Well, I'll be telling all my clients to bring in their stuff monthly. If they don't, they'll probably miss the deadline.

Not my problem.

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Rebecca Benneyworth profile image
By Rebecca Benneyworth
08th Mar 2017 19:13

The responses to the consultation published on 31 January 2017 covered this point. Respondents (us) raised a number of technical problems with the proposals - not least that they were not intended to cover partnerships (!!). Government has thanked us for the comments and will think further on this and release another consultation in due course. So this will not be happening in the near future.

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