Consultation launched on self-employed basis period reform

12th August 2021 | News

HMRC has recently launched a consultation on how basis periods can be reformed for income tax for the self-employed.

The consultation seeks to gather views on how best to implement a proposal to simplify the rules under which profits of an unincorporated trading business are allocated to tax years using basis periods. The consultation also includes suggestions regarding transitional rules for moving to the new system.

HMRC aims to simplify the system before Making Tax Digital (MTD) for income tax is implemented.

The proposals affect the self-employed and partnerships with trading income. It mainly affects unincorporated businesses that do not draw up annual accounts to 31 March or 5 April and those that are in the early years of trade.

HMRC stated that it would like to gather views on the matter from businesses, advisers, tax software providers and representative bodies.

Internet link: GOV.UK Basis period reform – consultation

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

Global Association

News

Year-end expenses and reporting of benefits

The 6th July deadline for reporting year-end expenses and benefits via the P11D forms is rapidly approaching. These can be submitted to HMRC online using either commercially available software or HMRC’s PAYE Online Service which is only available for employers with up...

Contact

0161 399 0121

York House, 20 York Street, Manchester, M2 3BB

0151 303 3112

Avenue HQ Liverpool, 17 Mann Island, Liverpool L3 1BP

Contact us

© Copyright 2020 Williamson & Croft LLP - Registered No OC402211