HMRC launches consultation on basis period reform

21 Jul 2021

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.

In the consultation, the current rules for basis periods are outlined, alongside a specific proposal to simplify them and suggestions regarding transitional rules for moving to a new system.

HMRC hopes to simplify the system before Making Tax Digital (MTD) is implemented.

The proposal affects the self-employed, partnerships, trusts and estates 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. The consultation can be found here.

Home | Contact us | Terms of Business | Accessibility | Disclaimer | Help | Site map |

© 2021 Walker Moyle. All rights reserved. | Walker Moyle is a trading name of Walker Moyle Ltd. Registered in England and Wales No 09173854
Registered Office: Alverton Pavilion, Trewithen Road, Penzance, Cornwall, TR18 4LS

We use cookies on this website, you can find more information about cookies here.
Walker Moyle, Alverton Pavilion, Trewithen Road, Penzance, Cornwall TR18 4LS
Walker Moyle : The Old Post Office, Tregenna Place, St. Ives, Cornwall TR26 1SD
Walker Moyle : 3 Chapel Street, Redruth, Cornwall TR15 2BY