The long-awaited HMRC form which will allow businesses to check their Overlap Relief figure in preparation for filing tax returns under the new Basis Period transitional phase, has now gone live.

  • The change in Basis Periods for Income and Capital Gains Taxes for sole traders and partnerships will happen from next year, Tax Year 2024-25.
  • Going forward, businesses will be assessed on a Tax Year basis instead of the previous Current Year Basis.
  • 2023-24 will act as a transitional year, with businesses that do not have a 5 April year end having some profits taxed twice. Any brought forward Overlap Relief will be available for offset against these profits.
  • Overlap relief is generated upon the start up of a business, meaning that many businesses may no longer know whether they have Overlap Relief available to them or not.
  • To this end, HMRC have produced an online form that can be completed, and, where possible, HMRC will provide the business with the figure they require.
  • This form went live on Gov.UK on 11 September.

The form is submitted using the Government Gateway or the Agent Services Account if you are an agent completing the form for clients. Information required includes:

  • your name
  • the name or description of your business (or both)
  • your business address
  • your Unique Taxpayer Reference (UTR)
  • details of whether your business is a sole trader or part of a partnership
  • the partnership’s UTR if your business is part of a partnership
  • the date your self-employed business or being a partner in a partnership began (if not sure, the tax year this began)
  • the most recent period of account or basis period used by your business
  • the year or years the accounting period changed (if applicable)

HMRC will then send confirmation of the figure by letter or via email. It is expected to take up to 3 weeks to get a response, although complex cases may take longer.

Useful guides on this topic

Accounting periods and tax basis periods
Which date do I choose? Does it matter? Can I change my accounting date?  What changes are made as the result of basis period reform?

Basis Period reform
What is basis period reform? Who is affected? What is the new basis year for tax? What are the transitional rules?

External link

Get your Overlap Relief figure

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