HMRC are changing the accounting periods for Sole Traders and Partnership’s. Regardless of your accounting period, tax will be paid on the profit of the business within the tax year, starting from 2024. Therefore tax will be paid of profits from 6th April – 5th April.
This will make it much simpler to account for your tax, no need for accounting within two periods, makes maintaining records easier and removes a number of complicated HMRC compliance.
When setting up a sole trader business we recommend setting the accounting year end as March 31st.
https://www.gov.uk/government/publications/basis-period-reform/basis-period-reform
