Understanding basis period changes in taxation reform

Tax listing.jpg.jpg

Upcoming changes and who this impacts

If you are self-employed or in a partnership, you may be affected by the upcoming change in how your taxable profits are calculated. The basis period reform will require that from 6 April 2024, all individuals who are self-employed and in partnership will need to report their profits to 31st March or 5th April each year. In theory, this will simplify and align the taxation of trading income with other forms of income for individuals going forward.

The reform will affect you if you are a sole trader or an individual in partnership and your accounting year end is not 31 March or 5 April. It does not affect companies.

What you need to do

This means that you may need to prepare your accounts for the 2023/24 tax year earlier. You may also face a cash flow impact as you may have to pay tax on more profits in the transitional year 2023/24.  Speak to our tax department so that we can help you plan ahead, anticipate how this will affect future tax payments and see if there are any planning opportunities available to mitigate the impact on you.

To help you prepare for the change, you should consider using an online accounting software such as Xero, which can make your accounting easy and save you time. Xero can connect to your bank feed, automate your invoicing and billing, and give you real-time insights into your finances.  This may help where accounts need to be prepared sooner.

How We Can Help

At Pierce, we have a dedicated team specialising in online accounting services who can help you choose the best software for your business. We can also offer you training and support to make the transition smooth and hassle-free. We can also advise you on how to manage the impact of the reform on your cash flow and tax planning. 

If you want to find out more about the basis period reform and how it affects you or would like assistance with online accounting, please contact us today. We are here to help you grow your business and achieve your goals.

Enjoyed this? Read more from Pierce CA Ltd

Latest news

1

Beer and gin festival returns in support of local youth charity Blackburn Beer and Gin Festival

Beer and gin festival returns in support of local youth charity

29 Feb 2024

2

Government minister tours Eden Project site Esther McVey MP Visited The Eden Project Morecambe Site To Learn More About The Latest Plans For The Forthcoming Attraction 6

Government minister tours Eden Project site

27 Feb 2024

3

Bowker Motor Group's million-pound charger investment PXL_20240222_151929237.jpg.jpg

Bowker Motor Group's million-pound charger investment

29 Feb 2024

4

Why you shouldn’t ignore sustainable logistics in 2024 Sustainable Logistics 01.jpg.jpg

Why you shouldn’t ignore sustainable logistics in 2024

29 Feb 2024

5

Society1 member interview: Mich Bondesio from-the-members-mich-2.png.png

Society1 member interview: Mich Bondesio

29 Feb 2024

Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
LBV115 Magazine Launch Event
DSC9389
Networking
20 Mar 2024

LBV115 Magazine Launch Event

Delta Hotels by Preston Marriott, Garstang Road, Broughton, PR3 5JB

16:00 - 18:00

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
01 Mar 2024

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

Business Networking in Preston - BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
01 Mar 2024

Business Networking in Preston - BNI Brunch

Samlesbury Preston Hotel, Preston New Road, Preston, PR5 0UL

09:30 - 11:00

Complete Charity Ball Event
charty-ball-1200x630.jpg.jpg
LBV Hub Dinners / Balls
02 Mar 2024

Complete Charity Ball Event

Dalmeny Hotel, St Anne's

19:00 - 21:00

The Landmark Great Hall open day
The Landmark Great Hall will host an Open Day on Sunday 3rd March.jpg.jpg
LBV Hub
03 Mar 2024

The Landmark Great Hall open day

The Landmark, 1 School Lane, Burnley, BB11 1UF

12:00 - 15:00

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
05 Mar 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
05 Mar 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

Techy Tuesday Meet-Up at Society1
Techy Tuesdays.jpg.jpg
LBV Hub Networking
05 Mar 2024

Techy Tuesday Meet-Up at Society1

Society1, Preston, PR1 3LT

12:00 - 13:00

Business Networking in Preston - BNI Diamond
LBV Hub Networking
06 Mar 2024

Business Networking in Preston - BNI Diamond

The Marriot Hotel, Garstang Road, Broughton, PR3 5JB

07:15 - 09:00

Business Networking in Lancaster - Eden Business Network
EVENT LISTING Eden Business Network.png.png
LBV Hub Networking
06 Mar 2024

Business Networking in Lancaster - Eden Business Network

The Borough, 3 Dalton Square, Lancaster, LA1 1PP

18:30 - 20:30

Business Networking in Accrington - BNI Zeus
EVENT LISTING SIZING Zeus.png.png
LBV Hub Networking
06 Mar 2024

Business Networking in Accrington - BNI Zeus

The Mill House, Corn Mill Yard, Accrington, BB5 5HX

06:45 - 08:30

Blackburn and Preston Audi VIP Events
Stoke NN (2).jpg.jpg
LBV Hub Exhibitions
07 Mar 2024 - 11 Mar 2024

Blackburn and Preston Audi VIP Events

Blackburn Audi/ Preston Audi, Blackburn Audi, Trident Park, Whitebirk Drive, Blackburn BB1 3HT / Preston Audi Riversway Motor Park, Nelson Way, Preston PR2 2JZ, BB1 3HT / PR2 2JZ

08:30 - 19:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv114 Online Graphic
Subscribe now

Weekly news bulletin