Changing the tax year end would be beneficial but costly, according to OTS report

There are clear benefits in adopting a tax year which is either aligned with the calendar year or with a calendar month-end according to the research from the Office of Tax Simplification (OTS).

The OTS has published a review setting out its analysis of the benefits costs and wider implications of a change to the date of the end of the tax year for individuals. It does not aim to make a specific recommendations but instead presents information and analysis about the issues involved to inform evaluation of any potential change and its timing.

The analysis suggests the costs of change would be significant. Whether moving to 31 March or 31 December the work involved would consume government and private sector resources and make it much harder to implement other changes at the same time. A move to 31 December could also...