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Overlap Relief Help

IFAPAccountancyIFAPAccountancy MAAT, AAT Licensed Accountant Posts: 6
Hi All!

I have recently acquired a sole trade client who has the year end of 31 July.

We've spoken about changing her year end to bring it in line with the tax year, however I'm slightly struggling with the overlap relief. There is no mention of overlap relief on any of her previous years returns and I think there should have been some brought forward? Can I calculate the overlap and add it in? If it isn't brought forward on her return, does she just have to pay the whole amount of tax due for the extended period? I'm not 100% on this so anyone with any advice would be great.

I'm also aware that I won't be able to extend her return this year to 05 April because the period is too long.

Thank you!

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