What is an end of period statement (EOPS)?
Definition of end of period statement (EOPS)
An end of period statement (EOPS) is the document that allows those taxpayers filing their tax returns under Making Tax Digital to finalise their business income for a basis period. The EOPS will be introduced in April 2024 as part of the Making Tax Digital for Income Tax initiative, which will replace the annual Self Assessment tax return for many taxpayers.
HMRC will require affected taxpayers to complete an EOPS for each source of business income. For example, if a taxpayer has income from self-employment and also from renting out a property, then they will have to complete two end of period statements (one for each source of income).
How often will taxpayers have to file an end of period statement?
The EOPS will be linked to the accounting period or basis period for each source of income. Taxpayers will not be able to complete an EOPS until the end of the relevant period. For most taxpayers, this means that an EOPS will only be required once a year when filing their annual tax return.
What happens after a taxpayer files an end of period statement?
Once a taxpayer has completed an EOPS for each of their sources of income, they will be able to finalise their end-of-year tax position through a process called a final declaration.