Basis Period Reform: implications for farmers We have previously considered the impact on sole traders and partnerships of the proposed basis period reform (which is part of the government’s plans for Making Tax Digital for Income Tax Self Assessment. This reform was originally due to take effect in the 2022/23 tax year but has now been deferred until 2023/24. This means that there is still time for accountants and their clients to consider the position if their year-end is not coterminous with the tax year and to take steps to minimise the impact of the new measures.
Example of taxable profits before/after basis period reform 2022/23 Profit Year ended 30 June 2022
£80,000
2023/24 Profit Year ended 30 June 2023
£80,000 £60,000 -£10,000 £130,000
Period from 1 July 2023 – 5 April 2024
Overlap profit
Total taxable profits
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