The ATT has published its written evidence to the House of Lords Economic Affairs Finance Bill sub-committee inquiry into the Draft Finance Bill. The written evidence follows up on oral evidence given by the ATT before the 13 October 2021 consultation deadline and focuses on basis period reform.
Key findings include:
the opportunity for simplification should be balanced against increased complexity, administrative burdens and costs for businesses which do not have a 31 March or 5 April year end;
interaction of the changes with existing tax reliefs should be considered;
delayed implementation is welcome – the ATT suggests that HMRC should use the extra time to engage with stakeholders to minimise additional burdens likely to be faced by businesses.
although the reforms may not affect the majority of unincorporated businesses (which already have a 31 March/5 April year end), those who are affected will face potentially significant additional administrative burdens and tax bills – particularly considering the existing overlap profits rules, where the ATT understands some businesses are likely not to have a record of their original overlap.
The ATT has published its written evidence to the House of Lords Economic Affairs Finance Bill sub-committee inquiry into the Draft Finance Bill. The written evidence follows up on oral evidence given by the ATT before the 13 October 2021 consultation deadline and focuses on basis period reform.
Key findings include:
the opportunity for simplification should be balanced against increased complexity, administrative burdens and costs for businesses which do not have a 31 March or 5 April year end;
interaction of the changes with existing tax reliefs should be considered;
delayed implementation is welcome – the ATT suggests that HMRC should use the extra time to engage with stakeholders to minimise additional burdens likely to be faced by businesses.
although the reforms may not affect the majority of unincorporated businesses (which already have a 31 March/5 April year end), those who are affected will face potentially significant additional administrative burdens and tax bills – particularly considering the existing overlap profits rules, where the ATT understands some businesses are likely not to have a record of their original overlap.
