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The basis period is the period on which a sole trader calculates their tax each year.
If you’re self-employed, you can choose your basis period.
Here are the different periods to choose from:
Using a custom period can be complicated. One of the common risks is ending up overtaxed and having to claim it back. This happens because not every basis period will overlap 100% with the normal tax year. It’s therefore best to only use a custom basis period if you have a solid reason to do so.
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