OTS publish scoping document which makes proposals about potentially moving tax year end date
04 June 2021
The Office of Tax Simplification (OTS) has today, 4 June 2021, published a document setting out the wider implications of possibly changing the date of the end of the tax year and the effect it will have on benefits and costs for individuals.
Its focus will be on the implications of moving the tax year end date from 5 April to 31 March. The rational of this date is that this is both the end of a calendar quarter and the nearest month end date to the end of the current tax year. It is also the same date as the UK financial year end date, which the UK government makes up its own accounts, and by reference to which corporation tax rates apply.
The review will also consider potential alternative approaches to addressing practical issues connected with the UK’s tax year running to 5 April as well as considering the implications of changing the tax year end to 31 March.
In addition, the OTS will outline the main additional broader issues, costs and benefits that would need to be considered if the end of the tax year were moved to 31 December.
CIPP comment
Changing the date of tax year end would have massive implications for payroll professionals and the work that they carry out. We want to hear from you, so please get in touch and let us know your initial thoughts, and whether you view this as a positive or a negative step. The Policy team can be contacted at [email protected].
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