⭐️⭐️⭐️⭐️⭐️ Based On 100+ Google Reviews

  • 0161 962 1855
  • Book Your Free Consulation
  • Home
  • About Us
    • Our Team
    • Our Social Commitment
    • Working With Us
    • Careers
  • What We Do
    • Making Tax Digital
    • Annual Accounts
    • Bookkeeping
    • Business Consultancy
    • Business Growth
    • Cash Flow Forecasting
    • Capital Gains Tax
    • Corporate Tax
    • Financial Forecasting
    • Inheritance Tax
    • Online Accounting
    • Payroll
    • Personal Tax
    • Property Tax
    • R&D Tax Credits
    • Self Assessment
    • Tax
    • VAT
  • Sectors
    • Startup Accountants
    • Construction
    • Creative and Digital
    • Dentists
    • Ecommerce
    • Electricians
    • Hair Salons & Barbers
    • Hospitality
    • Influencers
    • Law Firms
    • Manufacturing
    • Medical Professionals
    • Personal Trainers
    • Plumbers
    • Retail
    • Small Businesses
  • Resources
    • Case Studies
    • Tax and Business News
    • Testimonials
  • Contact Us
  • Careers
  • Home
  • About Us
    • Our Team
    • Our Social Commitment
    • Working With Us
    • Careers
  • What We Do
    • Making Tax Digital
    • Annual Accounts
    • Bookkeeping
    • Business Consultancy
    • Business Growth
    • Cash Flow Forecasting
    • Capital Gains Tax
    • Corporate Tax
    • Financial Forecasting
    • Inheritance Tax
    • Online Accounting
    • Payroll
    • Personal Tax
    • Property Tax
    • R&D Tax Credits
    • Self Assessment
    • Tax
    • VAT
  • Sectors
    • Startup Accountants
    • Construction
    • Creative and Digital
    • Dentists
    • Ecommerce
    • Electricians
    • Hair Salons & Barbers
    • Hospitality
    • Influencers
    • Law Firms
    • Manufacturing
    • Medical Professionals
    • Personal Trainers
    • Plumbers
    • Retail
    • Small Businesses
  • Resources
    • Case Studies
    • Tax and Business News
    • Testimonials
  • Contact Us
  • Careers

Self-employed – plan for big tax bills in 2023/24

  • Written by Katie
  • September 7, 2022
  • Business Advice

Self-employed – plan for big tax bills in 2023/24

The changes to the basis of assessment of self-employed profits are scheduled to change from 6 April 2024. The new rules mean that profits (and losses) will be assessed based on the amounts arising between 6 April and 5 April instead of the profit/loss of an accounting period ending in the tax year. This means that where the business accounts do not coincide with tax year the profits or losses will need to be apportioned. This is intended to coincide with the start of Making Tax Digital for income tax.

Transitional rules proposed for the previous 2023/24 tax year could result in large tax bills for some sole traders and partners, particularly those with an existing 30 April year end. The profits of year ended 30 April 2022 would be taxed in 2022/23 under the current rules with 2024/25 taxing profits arising between 6 April 2024 and 5 April 2025 under the new rules. But what about 2023/24?

The profits taxed in 2023/24 would be those for year ended 30 April 2023 plus the period 1 May 2023 to 5 April 2024 – in total 23 months profits!

The good news is that there would be a deduction for “overlap relief” (as much as11 months) which typically arose when profits were taxed twice at the start of the business – but those will often be much lower than the extra 11 months being taxed in 2023/24.

The transitional provisions provide for the “excess” profits to be spread over the next 5 tax years to smooth out the excessive tax bill.

Need more information?

Are you self-employed? We offer a wide range of services which are unique to your businesses and our team of chartered accountants have a wealth of experience in a broad range of sectors. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

Contact us below

Fields marked with an * are required





    Recent Posts

    It’s P11D Season! Here’s What Employers Need to Know for 2024/25

    June 9, 2025

    New Advisory Fuel Rates from 1 June 2025

    June 7, 2025

    Employment-Related Securities Returns: Deadline 6 July 2025

    June 4, 2025

    HMRC Spring Update 2025: Key Tax Changes for Employers and the Self-Employed

    June 2, 2025

    Need Help?

    Book a Free Consultation
    PrevPrevious PostProtecting pregnant workers and new mothers
    Next PostCapital Gains Tax – proposed divorce changesNext

    A&C Chartered Accountants is the leading independent accounting firm in Manchester, providing accounting and business advisory to startups, sole traders and SMEs.

    Facebook-f Linkedin Instagram Youtube

    Useful Links

    • About Us
    • Services
    • Testimonials
    • Contact Us
    • Privacy
    • Cookies
    • About Us
    • Services
    • Testimonials
    • Contact Us
    • Privacy
    • Cookies

    Get In Touch

    • info@ac-accounts.co.uk
    • 0161 962 1855
    • Manchester City Centre: 53 King Street, Manchester, M2 4LQ
    • Sale, Cheshire: 1A Marsland Road, Sale, Cheshire, M33 3HP
    Xero Platinum Partner Logo
    ICAEW Chartered Accountant Badge
    SME Climate Hub Committed Badge
    Good Business Charter Accreditation Badge

    A&C Chartered Accountants © All Rights Reserved 2024 | Company Registered in England & Wales No: 06272442 | VAT Registration No: 910327267