The Office of Tax Simplification (OTS) is considering moving the end of the tax year from 5 April to either 31 March or the end of the calendar year.
A document has been published by the OTS detailing plans to review the benefits, implications and potential costs of changing the date to the end of March. The OTS will also explore running the tax year to 31 December.
Aligning the tax year with the UK’s financial year could prove to be highly beneficial to the self-employed, with the removal of balancing different deadlines for income tax and VAT easing some administrative demands.
The OTS said: “Accounting systems used by businesses have been developed around month and quarter ends. While primarily addressing tax simplification issues, the review will also take account of the implications of any change in other areas, such as in relation to tax credits and benefits.”
The review by the OTS will also consider tax compliance, particularly in relation to Income Tax, PAYE, National Insurance contributions, Capital Gains Tax and Inheritance Tax.
If you would like to discuss any tax matters in relation to your own business, contact our team on 01788 539000 or 0116 261 0061.
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