Frequently Asked Questions

In the Government's Autumn Statement of 2015, George Osborne announced a major change in the reporting of income by 'companies, partnerships and individual taxpayers who are self-employed and those letting out property'. The change will be phased in from 2017 to 2020.

Rather unsurprisingly, one aspect of the change is that tax will be payable earlier, based on profits or income for the month or quarter in question.

Taxpayers affected will be required to submit accurate returns of profits / income arising for the period in question. They will not be able to estimate the profit / income based on the preceding years figures. 

The government has described the change as a simplification of the tax system, however the change is likely to represent an increased administrative burden on all taxpayers affected and in particular self employed individuals and small companies.

The plan is still under consultation, but it seems likely that any amendments to the planned changes will only have a marginal effect.

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