If you are a sole trader, or operating in a partnership, then the basis period reform which commences in 2023/24 could affect you. If your accounting period does not align with the tax year, then you must extend your accounting period to 5th April (or 31st March). This means there could be additional profit requiring to be taxed. Although this ‘transitional’ profit can be spread over five years, it may be more than you think. Please get in touch if you think you are impacted by this – it’s important you take action now, and we can help you calculate the amounts due, and potentially claim any overlap relief which may be available to you to reduce the impact of the transitional profit.