Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 27 Dec 2022 20:11:52 GMT by Claire Nelson
I'm a writer and author, and for self assessment year 20/21, my (former) accountant introduced me to averaging my income over 2020 and 2021 – in 2020 I had very little income and therefore very little tax to pay, but in 2021 income was much higher, so the averaging helped. I now have a new accountant, who tells me that the averaging on my income means "this needs to be brought in into the current year profits and hence increases the current year tax charge" and that "it has just moved around the same amount of tax between years". That's now how averaging is supposed to work is it? HMRC are closed for the bank holiday at the moment so would love to hear some insight from anyone who's in the know about this.
Posted Tue, 03 Jan 2023 13:44:55 GMT by HMRC Admin 10
Please see guidance at:
Averaging profits of farmers etc �
This refers to farmers and creative artists for which you fall under.

You must be signed in to post in this forum.