OTS considering shifting tax year end to 31 December

The Office of Tax Simplification (OTS) is considering shifting 2021’s tax year to 31 December.

The tax body’s review will examine the implications of moving the tax year end date from 5 April to 31 March.

As part of the review, OTS published a document setting out the scope of a new high-level exploration of the benefits, costs and wider implications of changing the date of the end of the tax year for individuals.

In a statement, the government organisation said: “As well as considering the implications of changing the tax year end to 31 March, the review will also consider potential alternative approaches to addressing practical issues connected with the UK’s tax year running to 5 April.

“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.”