The tax 12 months could possibly be altered to deliver it into line with calendar months, a Authorities advisory physique has mooted.
A assessment has been launched which might see the tip of tax years for people beginning on April 6, with April 1 or January 1 prompt as potential dates.
The Workplace of Tax Simplification – an unbiased adviser to Authorities on tax simplification – stated its scoping assessment would deal with the prices and advantages of transferring the tax 12 months finish date from 5 April to 31 March.
A transfer to March 31 would deliver people into line with firms and the UK Authorities’s personal accounts which run to the identical date.
The OTS stated: “The UK’s tax 12 months for people runs from 6 April to the next 5 April. That is for historic causes and has been the case for a whole lot of years; the UK’s trendy tax system and infrastructure have been developed round this date.
“Against this, accounting techniques utilized by companies have been developed round month and quarter ends.
“Throughout companies and internationally, it is not uncommon to account to a month finish date. Many nations use 31 December for his or her authorities accounts and the 2 hottest accounting dates for multinationals are the calendar 12 months finish date of 31 December and 31 March.”
The primary 12 months after such a transfer would see the tax 12 months shortened by 5 days if the date was moved to March 31, whereas transferring it to fall into line with calendar years – similar to in France Germany and the US – would imply a transitional 12 months shortened by greater than three months.