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Posted Mon, 29 Apr 2024 09:29:56 GMT by Sarah Wilson
if a sole trader previously made up accounts to 30th April and then changed to 31st March would they have transitional relief? for instance accounts to 30th April 2022 taxed in 22/23. The accounts to 30th April 2023 and then 11 months to 31st March 2024, would the period 1st May to 31st March fall into transitions period and be able to spread over 5 years?
Posted Thu, 02 May 2024 15:17:46 GMT by HMRC Admin 25
Hi Sarah Wilson,
Yes, please see further guidance here:
Work out your transition profit
Thank you. 
Posted Mon, 06 May 2024 06:39:12 GMT by Sarah Wilson
Thanks I have used the guidance and it gives Transition profits in this case ,. However my software provider says this does not agree to the legislation and no transisition is due. Can you confirm the correct position?
Posted Tue, 07 May 2024 15:23:59 GMT by Helen Macmillan
Hi Sarah, Are you using Iris software? I am having the same issue with their software in this exact situation. I have sent them the guidance which shows that transitional rules should apply. They have told me that they are waiting for HMRC's response to clarify the rules (and also when extending the existing year end). Not ideal!
Posted Tue, 07 May 2024 16:27:12 GMT by Daniel Graham
Is the Software privider in question Iris? If so their current standard line is they are waiting for HMRC to confirm the correct position before they can update their software. Whether you believe them or not is a different matter.
Posted Wed, 08 May 2024 10:10:14 GMT by Sarah Wilson
Yes IRIS . There was a good article on Accounting Web today confirming we are right as per ATT. I have sent guidance, example 9 from HMRC and the article to IRIS but there are still saying HMRC needs to respond However it would be good to here from HMRC
Posted Mon, 13 May 2024 16:19:07 GMT by HMRC Admin 19
Hi Sarah Wilson,

As you are having to change your dates to meet the new legislation and have confirmed that you do have transition profits you will need to go back to your software provider and refer them to the links provided.

Thank you.

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