In our first Professional Practices and Financial Services podcast we discuss basis period reform.
With effect from the 2023-24 tax year, there are changes to the tax reporting rules which will impact businesses such as partnerships and the partners within these firms.
Our episode looks at areas including:
- What is the basis period reform, who does it affect and and why is it being brought into place;
- The timeline for the new rules;
- Profit share calculation for the 2023-24 and 2024-25 tax years;
- The question of accounting date changes to 31 March or 5 April; and
- The crucial responsibility of the decision to change the year-end for a partnership, and the relevant impact on partner taxation.
We must note that although we discuss the general topic of the basis period reform, this is in relation to professional practices firms such as accountants, lawyers, architects, engineers and quantity surveyors.
Additionally, this area is very complex, so professional advice must be sought before taking any action.