Overlap relief calculator launched
An interactive tool has been launched to help taxpayers calculate the overlap relief to report on their 2023/24 self-assessment tax returns. What’s the full story?
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Deadline to pay Class 1B NI
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Company owners' personal tax affairs under scrutiny
Company owners are being urged to check their personal tax affairs as a new compliance campaign focuses on transactions between limited companies and the people who control them. Loans, personal expenses and the use of company assets are among the areas attracting attention. Could you have overlooked a tax liability?
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HMRC speeds up National Insurance refunds
HMRC has confirmed that it is using a new automated process to speed up National Insurance refunds. Where its records suggest that someone may have overpaid, HMRC will write to them asking them to check their employment and contribution details before any refund is processed. Could you be due money back?
The 2023/24 self-assessment tax returns need to be filed by 31 January 2025, but, for partners and sole traders a little extra work may be necessary. Any overlap relief brought forward from earlier periods must be relieved in 2023/24 as this is the year that trading profits move from being assessed on basis periods to align with the tax year from 2024/25. Overlap relief was created in the early days of trading, where profits were taxed twice if the business drew accounts to a date other than 31 March/5April.
Retrieving the figure to use should be straightforward for most as, ordinarily, the overlap relief figure will be shown as overlap profit carried forward on previous tax returns. However, if not, the individual or their agent can use HMRC’s new online tool to work out their overlap relief figure.
HMRC may be able to provide the overlap relief figure if required but has requested that taxpayers and agents do so by 31 December 2024 to help it manage demand.
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