This is coming whether you like it or not. 5 April will be a memorable date for all self-employed individuals and partnerships because at that date the way your profits are reported on your tax return is going to change.

From 6 April 2024, the profits to be reported each year will be the actual profits earned in that tax year, which might involve apportioning the profits from 2 sets of accounts.

We are already in the transitional year. If you prepare accounts for any date other than 5 April (or 3 March) then the profits to be reported on your 2023/24 tax return will be more than a year, which could be painful.

Not only that but you may not have time each year to prepare he second set of accounts you need in time to populate your next tax return.

There are provisions to spread the extra profits and tax over the next few years but nonetheless, you are not going to like the result.

Going forward, most sole traders will want to change their accounting date to 5 April (or 31 March) and you need to give that some consideration.

Is 5 April 2024 going to be your next accounting year end?



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