The vast majority of UK small businesses would like to see the date of the tax year end changed from April to January to match other countries, according to a new survey.
This survey by BDO saw the company talk to the owners of 500 small-to-medium enterprises (SMEs) in the UK, with 91% of them stating that they would favour shifting the date for the end of the tax year to January 1. The current end date for the tax year in this country is April 6. However, they also stated that this change would need careful handling, including giving small firms longer deadlines to complete tax returns while they adjust to the new date.
The British Chambers of Commerce (BCC) has argued that changing the date of the tax year end might make the process of keeping accounts easier for SMEs, although this will not be an issue for those who use accountants in Goole or wherever they are based. The BCC went on to say that such a change must not add to the paperwork faced by smaller firms.
According to Small Business, Paul Falvey from BDO said firms believed that this change could assist them in moving forward in the wake of the pandemic and Brexit, adding:
“Changing the tax year to December 31 is supported by businesses of all sizes and will be particularly helpful for those with international connections.”
The change would mean the UK system aligned with that of other countries, another key reason why it is supported by UK SMEs.