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Important News for GP Practices with non-March Year Ends

22nd September 2022

Important News for GP Practices with non-March Year Ends

There are changes coming in to effect in the tax year 2024/25 which will impact on GP practices with non-March year ends.  Rowleys’ specialist medical team share more on how it may impact on your tax, cash flow and potential retirement plans.


What’s changing?

At the moment, you are taxed on the profits you declare in your accounts during the tax year, so for example, if your year end is 30 September 2022, you will declare these profits in your 2022/23 tax return and submit this to HMRC by 31 January 2024.


From 2024-25 this will change and you will be assessed on profits earned during the tax year, i.e. 1 April 2024 to 31 March 2025.


Transitional Year & Relief

There could be an impact on your tax charges in the transition as you will have additional profits subject to tax given the extended accounting period.



Accounting Period Period Tax Assessed
30th September 2022 1st October 2021 to 30th September 2022 2022/23
30th September 2023 1st October 2022 to 30th September 2023 2023/24
6 months to 31st March 2024 1st October 2023 to 31st March 2024 2023/24
31st March 2025 1st April 2024 to 31st March 2025 2024/25



In this example you will be taxed on 18 months of profit from 1 October 2022 to 31 March 2024 creating a larger tax liability and potentially impacting on tax bands.


In the transitional tax year (2023/24) any ‘overlap profits’ for an individual partner (profits that were taxed twice when joining a non-March year end partnership) will be deducted from the transitional year profit, to reduce the profits charged.


Any remaining ‘transitional profit element’ for the 2023/24 tax year will  be spread over the forthcoming 5 tax years beginning with the 2023/24 tax year. If you cease to be a partner during the transitional period, any remaining profits will be taxed in your final year. It will be possible for partners to accelerate the spreading by making an election.


Important points to note:


For specialist, professional advice or assistance on forecasting how these changes may affect you, please contact Paula Swann-Jones on 0116 2827000 or or Claire Farr on 0116 2827000 or


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