According to a HMRC article, they are planning to launch a new online form for submitting requests for details about overlap relief. This will make it easier to find out details of what overlap relief a taxpayer may have.
HMRC Are also planning to publish guidance on overlap relief and the changes to the rules for the new tax year basis.
Taxpayers with an accounting date other than 31 March or 5 April who are affected by the move to the new tax year basis may need to find out the details of their overlap relief and this may impact the tax calculation in the 2023/2024 transitional year.
However, it should be noted that HMRC will only be able to provide overlap relief information if these figures are sent to HMRC at the time as part of the tax return process and are recorded in HMRC systems.
HMRC will require certain information in order to be able to try and process an information request relating to overlap relief. This information is likely to be:
a) Customer name,
b) National Insurance number or Unique Taxpayer Reference (UTR),
c) Either name or description of business, or both,
d) Whether this business is a sole trader or part of a partnership,
e) If the business is part of a partnership, the partnership’s UTR,
f) Date of commencement of the self-employed business, or date of commencement as a partner in a partnership (if not known, then the tax year of commencement),
g) The most recent period end date up to which the business used to report its profit or loss.
Basis period reform will commence from 2024/2025 and 2023/2024 will be used as a transitional year. The basic premise is that the “basis period” of taxing trade profits will be replaced with a “tax year” basis. Where a trade has an accounting period which matches the tax year or to the 31 Mar, then this is likely to facilitate the process.
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