Basis period reform: HMRC launches new online form to request information on overlap profits
By Chris Campbell, Head of Tax (Tax Practice and Owner Managed Business Taxes)
11 September 2023
After an initial delay, HMRC has now released an online form to request information on the overlap profits of an unincorporated business affected by basis period reform.
Following feedback from ICAS and other professional bodies, HMRC has issued its online form (known as a G-form) to enable tax practitioners to request overlap profits information about their clients, allowing them to calculate the 2023/24 taxable profit or loss for their clients affected by basis period reform.
The new G-form is now live on gov.uk and it will be necessary to log in using the government gateway ID and password. HMRC has advised that overlap profits information can only be provided if these figures are recorded in HMRC systems. This will be reliant on information submitted as part of previous tax returns.
In cases where the overlap profit figure has not been specifically noted on the client’s tax returns for previous years, HMRC will instead aim to provide information to enable the agent to calculate the overlap relief due.
By introducing this online form, HMRC will be able to direct requests to a specific team dedicated to responding to all submitted G-form requests. This should result in tax practitioners receiving a prompter reply than by general post.
Updated HMRC guidance on basis period reform
Ahead of the publication of the G-form, HMRC has issued some updated guidance on the changes to the basis periods for unincorporated businesses which do not currently have an accounting date ending on 31 March or 5 April.
There will also be a further ICAS webinar on basis period reform, covering the issues that our members need to be considering when discussion the impact of basis period reform with clients. This will be published on our website for on-demand viewing.
Let us know your views
Please share your feedback on the implementation of basis period reform and how it will affect you and your clients.
More generally, we also welcome members’ input to inform our work on consultations or other tax-related matters – email us to share your insights and feedback. ICAS responds to many tax calls for evidence and consultations, as well as producing tax policy papers and reports. We also regularly attend meetings with HMRC at which service levels, delays and other issues are discussed, and we raise problems being encountered by members.
