Thanks for the video. Presumably the 11 months in your example will now not have its own Personal Allowance to offset it against, or Annual Investment Allowance or Capital Allowances? Which for people like us with about £20k profits is catastrophic. We have effectively lost a year of Personal Allowance (because this 11 months chunk should have been set against the 24-25 Personal Allowance). Why hasn’t there been an outcry about the unfairness of this to small traders?
For some reason I can’t get my head around this, I filed up to the 31/12/23 last time, what do I do this time to make sure I don’t mess up my future tax returns?
@@lizthomas6533 Dec 31 22 to March 31 24… so that’s 15 months. You can also knock off 3 months of overlap profit from when you first became a sole trader. .. so in total you are still taxed on only 12 months of profits
@ no because you will have overlap profits to deduct… have you kept a record of what your overlap profits are? Overlap profits are basically when you would have paid tax twice on the same profits when you first set up as a sole trader… now is the time they can be relieved
@@tombrown1515 23/24 is the transitional year where you pay up to 23 months (max) worth of taxable profits.. but you can also knock off overlap profits, so you still should only be paying tax on 12 month’s worth of profits
It might be even worse than suggested! People starting businesses might have made losses on purpose for their first year of trading to grab market share and to become known in the marketplace.
![SHOULD I BE A LIMITED COMPANY [2024/25]](http://i.ytimg.com/vi/7qJPOxVlFgk/mqdefault.jpg)
Thanks for the video. Presumably the 11 months in your example will now not have its own Personal Allowance to offset it against, or Annual Investment Allowance or Capital Allowances? Which for people like us with about £20k profits is catastrophic. We have effectively lost a year of Personal Allowance (because this 11 months chunk should have been set against the 24-25 Personal Allowance).
Why hasn’t there been an outcry about the unfairness of this to small traders?
Thank you so much for your clear and concise explanation. Really helped with my assignment!
You’re welcome glad you found it useful
For some reason I can’t get my head around this, I filed up to the 31/12/23 last time, what do I do this time to make sure I don’t mess up my future tax returns?
@@asht7994 when you say last time, what tax year are you talking about?… 22/23 or 23/24?
really good explanation. keep it up man!
@@FatherSon521 thanks glad you liked it
Hi my Tax year runs from dec 2023 to Dec 2024, my tax form wont except the date? Do i have to do April 2022 to April 2023 😢 im so confused
@@lizthomas6533 Dec 31 22 to March 31 24… so that’s 15 months. You can also knock off 3 months of overlap profit from when you first became a sole trader. .. so in total you are still taxed on only 12 months of profits
Thank you, it's so confusing 😅
Hi I'm still a bit confused as I have paid my Tax for 2023, I need to do 2023 to 2024 return, will I have to pay twice if I do what you said 🙃
@ no because you will have overlap profits to deduct… have you kept a record of what your overlap profits are? Overlap profits are basically when you would have paid tax twice on the same profits when you first set up as a sole trader… now is the time they can be relieved
My Tax year ends on 31/02/2024 does this mean just an extra 2 months i have add on my return
@@antrob530 you mean 31 Jan?
i already did my tax from apr to apr tho lol so next year am i paying a year less or skipping a year and paying like 1.75?
@@tombrown1515 23/24 is the transitional year where you pay up to 23 months (max) worth of taxable profits.. but you can also knock off overlap profits, so you still should only be paying tax on 12 month’s worth of profits
It might be even worse than suggested! People starting businesses might have made losses on purpose for their first year of trading to grab market share and to become known in the marketplace.