Basis Period Reform - overlap relief service now available

After an initial delay, HMRC's online service for agents and taxpayers to request details of overlap profits is now available.

As long as the information is held by them and the form is completed fully, HMRC aim to provide the requested information by email within 15 working days of the form being submitted. 

Agents will need to login using their Agent Services Account credentials, and should be able to submit multiple requests for overlap relief figures (ie one request per client, as required). The service does not cover trusts, estates or non-resident companies with trading income; so you will need to contact HMRC via other means to request overlap profit details for those taxpayers. 

We would welcome any feedback on members' experiences with the form - please email us if there is anything you wish to share. 

Why is overlap relief relevant now?

Businesses drawing up accounts to a date other than 31 March or 5 April may have overlap profits carried forward from when they started trading. This affects not only sole-traders, but also partners.

Overlap profits can date back several years and records may be difficult to find. Where HMRC hold records of the overlap profits originally reported, the new online service allows and taxpayers and their agents to request them, as long as the necessary details can be entered into the form.

With the move to reporting profits on a tax year basis, from April 2024, tax returns for 2023/24 are the last opportunity to claim the tax relief available in respect of overlap profits. A more detailed recap of the transition to reporting profits on a tax year basis, and the relevance of overlap relief, can be found in our original news article covering this service.