02086810090 info@mccays.co.uk

OTS explores moving end of tax year

7th June 2021

The Office of Tax Simplification (OTS) is to explore changing the end of the tax year from 5 April to either 31 March or the end of the calendar year.

Published in a document on 4 June, the OTS said they would be analysing the "benefits, costs and wider implications" of a change to the end of the tax year, as well as how a change could simplify the UK's tax system.

It was looking at the end of March as a potential date because it is "both the end of a calendar quarter and the nearest month end date to the end of the current tax year".

Many major tax regimes including the USA, France and Germany have a tax year end date of 31 December, a date that aligns with the end of the calendar year.

The UK tax year end date of 5 April is in place for historical reasons with the modern tax system having been built around this date, while modern accounting systems developed around quarter and month-ends.

The OTS will publish its findings later this summer.

Talk to us about filing your tax return.

We are regulated by ICAEW registation
no. C008331935. 

ICAEW Chartered Accountants logo 

Quick Books logo

Xero logo