Section B - Case 2 (GreenRoots LLP)

GreenRoots LLP, an environmental NGO consultancy, has been trading for many years, making accounts up to 30 September. In 2023/24, they decide to change their accounting date to 31 December. They prepare accounts for the 15 months from 1 October 2022 to 31 December 2023.

What is the basis period for the tax year 2023/24?

When a business changes its accounting date, the basis period for the year of change ends on the new accounting date (31 December 2023). It begins immediately after the end of the basis period for the previous tax year. The 2022/23 basis period ended on 30 September 2022. Therefore, the 2023/24 basis period is the 15 months from 1 October 2022 to 31 December 2023. (Note: Overlap profits would be deducted to prevent double taxation).