UK proposes reform to income tax basis period

As outlined by Jane Crotty and Simon Johnson, fundamental change is expected to the way individuals’ trading income (including partnerships) is taxed that may apply to current accounting periods.

As the United Kingdom (UK) Government moves rapidly towards introducing Making Tax Digital for Income Tax which will require quarterly reporting from April 2023, Her Majesty's Revenue and Customs (HMRC) has published a policy paper, draft legislation and a consultation setting out fundamental changes to the rules for taxing trading income (including income from a profession or vocation). This will impact individuals, trusts, partnerships and others with trading income that is subject to Inco...

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Published Date: 20 August 2021