×

Resources

Revised tax period rules for unincorporated businesses

Resources

Revised tax period rules for unincorporated businesses

This page was last updated on May 9, 2022
Unincorporated businesses are due to enter their first taxable period under new basis period tax rules, potentially impacting on cash flow for some.

The changes affect the tax reporting for self-employed individuals, partners, trusts and estates with trading income. They involve aligning the tax ‘year-end’ of affected businesses with the fiscal year, taxing them on profits within a fiscal tax year regardless of the accounting period.

Due to be implemented in the 2024/25 tax year, with 2023/24 as a transitional year, the taxable period therefore runs from the start of their basis period in 2022/23 to 31 March 2024.

In some cases businesses may initially find they need to add additional months into the following year’s profits and will potentially face taxation on up to 23 months’ profit in one year, with an option to spread the accelerated tax over five years.

See our previous article, Potential changes to basis periods’ rules.


If you think your business will be affected by the changes, please get in touch with us.


Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary.

Copyright © Shipleys LLP 2022

Current Issues

COUNTING DOWN TO THE 2023/4 TAX YEAR-END - 5 clocks showing different times

Counting down to the 2023/4 tax year-end

Some tax planning pointers to consider in the run-up to 5 April 2024.

Looking to the general election and potential fiscal changes

With the nation expected to go to the polls this year, and uncertainty around future tax policies, careful personal financial planning is important.
Changes for research and development tax breaks. Colourful digital lightbulb with connecting lines and dots

Changes for research and development tax breaks

A brief breakdown of what to be aware of with the recent changes to research and development (R&D) tax relief.