What are overlap profits?
17 Aug, 2017
The assessment of self-employed or partnership profits is relatively straight-forward if the accounting date, to which accounts are prepared, falls between 31 March and 5 April. However, year ends that fall outside these dates create overlap profits.
Overlap profits can be created in the first 3 years of the business or in any year in which there is a change of basis period and accounting date.
For example, if your business commences 1 January 2016, and your chosen year end date is 31 December 2016, your basis periods are: