The change in reporting for the self employed and partnerships comes into effect from April for those who do not follow the standard accounting year end between 31 March and 5 April.

Under basis period reform, HMRC is keen for accounts to be prepared to 31 March or 5 April year ends from 2024 onwards.

Before working out transition profit, the first step is to work out the overlap relief if the accounting end date does not align with the tax year (accounting dates between 31 March and 5 April align with the tax year) or if it has been changed to align to the tax year, but the relief was not due.