Released 02 September 2021
The Chartered Institute of Taxation (CIOT) is urging the Government to delay a change to how sole traders and partnerships calculate their taxable profits each year – and is also calling for a delay to the controversial Making Tax Digital for Income Tax Self-Assessment proposals.
The CIOT believes both proposals will put major pressure on businesses and advisers already reeling from the impact of the Covid-19 pandemic.
The reform of the basis period rules is due to start taking effect from April 2022. The CIOT is concerned at how little time affected businesses, and those who advise them, have to prepare for the new regime, and, for some, budget for paying tax earlier than they might otherwise have paid it.
Further comment from the CIOT can be found at https://www.tax.org.uk/ease-pressure-on-businesses-by-delaying-digital-tax-reform-says-ciot.