Income Tax (Trading and Other Income) Act 2005 section 819

Adjustment of assessment

Section 819 allows an individual who provides qualifying care to make a late election for the alternative method of calculating profits when their tax return is adjusted after the normal election deadline has passed.

• If a carer did not elect for the simplified profit calculation by the normal deadline, and their qualifying care profits are subsequently adjusted, they get a second chance to make that election
• The late election applies only to the specific tax year affected by the adjustment and must identify that year
• The election (or its withdrawal) must be submitted to HMRC by the first anniversary of the normal self-assessment filing date for the year in which the adjustment is made, or a later date if HMRC allows it
• Without this provision, a carer whose profits were adjusted after the normal time limit could be permanently locked out of the more favourable alternative calculation method