There has been a change of account period now the basis period is incorrect.

There are four scenarios: 1. No account period ending in the tax year – The basis period will be manufacturer by taking the new accounting date and deducting one year. Overlap relief will arise in these circumstances. 2. Two sets of accounts ending in the tax year – The basis period beings immediately following the previous and ends on the new accounting date, the basis period will be longer than 12 months. Overlap will be utilised in these circumstances. 3. One set of accounts covering a period of less than 12 months – The basis period is 12 months to the new accounting date. Overlap will arise in these circumstances. 4. Once set of accounts covering a period of more than 12 months but less than 18 months – The basis period ends on the new accounting date, the basis period will be longer than 12 months. Overlap will be utilised in these circumstances.