Basis Period Reform was introduced for tax year 2023/24 meaning sole traders and partners in a business have to report their profits on a tax year basis.
Soletraders/Partners – Late tax returns - HMRC have confirmed no late filling penalties will be imposed for late returns for soletraders/partners who have requested their overlap relief figures from HMRC and who have not yet received a response. For individuals affected by the basis period rules the deadline for filling a return will be extended until 28th February.
Storm Eowyn - HMRC also confirmed they will take a sympathetic approach on a case-by-case basis towards any individuals who were affected by storm Eowyn which affected the ability of taxpayers to file returns on time.
By way of reminder, taxpayers who provide HMRC with a reasonable excuse may avoid a penalty for filing late. However, those without a reasonable excuse will be issued with a penalty including an initial £100 fixed penalty, which applies even if there is no tax to pay. Daily interest will be charged on late payment.
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