Now that the Office for Tax Simplification (OTS) has confirmed its review of the costs, implications and benefits of moving the UK's tax year-end, will it recommend a move to the 31st of March or the 31st of December?
The OTS has confirmed it is going to publish a report in the Summer of 2021 which explores in full, what would happen if the UK's tax year-end was to move to a new date.
"This is a serious, high-level exploration!"
There will be a full analysis of any issues that arise from a move, and it also examines the financial costs and the administrative burdens to taxpayers, employers and businesses in general. It will also look at the practical implications for HMRC's own systems and the actual tax gap.
The key focus is moving to the 31st of March which would align it with the UK's own financial year-end. However, the OTS has committed itself to look at a 31st of December tax year-end as well. This would align the UK with economies including Germany, France, the USA and Ireland.
As the economy recovers in a post-pandemic world, there are many in both Government and business who welcome this review which could move us away from the usual 5th of April date that is a legacy from many hundreds of years ago.
It'll be very interesting to see what the OTS report says.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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