HMRC has delayed the launch of an online service to help sole traders, self-employed, and accountants calculate overlap relief due to a rule change to basis accounting.

The original 31 August launch date has been pushed back to 11 September as HMRC faces technical issues in the design of the online service.

The new service is designed to provide HMRC a mechanism to quickly advise individuals on the amount of overlap they can claim when their reporting dates change, due to the upcoming changes to basis period tax year accounting.

Currently claims have to be made by post, often leading to long delays.

Craig Moulden, head of digital engagement at HMRC, said:

"It is important to us that the process for claiming overlap relief works well and is easy for you to use.

"Our testing has highlighted the need for us to make some further refinements to the online service. This means that the service will now be available from 11 September 2023.

"We're sorry for this short delay in the launch of the service and any inconvenience for you and your clients."

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