The UK’s tax year for individuals runs from 6 April to the following 5 April. This has been the case for hundreds of years. However, on 4 June 2021, the Office of Tax Simplification (‘OTS’) published a document detailing the scope of a new review as to the implications of moving the tax year end date from 5 April to 31 March for individuals.
While primarily addressing tax simplification issues, the review will also take account of the implications of any change to areas such as tax credits and benefit payments.
In addition, the OTS will also outline issues, costs and benefits that would need to be considered if the end of the tax year was instead moved to 31 December. Many major tax regimes including the USA, France and Germany align their tax year end date with the calendar year.
For more information on this article, please contact Eric Wardle and Alan Taylor.