What accountants and bookkeepers need to know about basis period reform

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The basis period for income tax is changing. From April 2024, unincorporated businesses
will move from an accounting year basis to a tax year basis. This means sole traders and
partnerships will need to report on profits generated in the tax year instead of in their
accounting period.

While the reform is only expected to impact 7% of sole traders, 33% of partnerships are
likely to be affected. As a result, there will be an increase in workload for bookkeeping and
accountancy practices across the country as the new rules come into place. And no doubt
clients will call on you for advice and guidance on the new legislation.

To help get your head around the next 12 months and all of the upcoming changes, we’ve
created a guide that explores the timeline for HMRC’s basis period reform, including what
the new rules mean for your practice and clients and what the opportunities and
challenges are that accountants, bookkeepers, and clients will face.

Download Guide

This content is brought to you by Xero.

Xero offers a cloud-based accounting software platform for small and medium-sized businesses..

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