The government have been making confusing announcements about the introduction of “Making Tax Digital” (MTD), accounting date rule changes and even changes to the UK tax system. What is clear is that significant changes to business tax for sole traders and partnerships are likely to happen in the coming few years.
There is also the new 1.25% levy that will be charged on self employment income from 6 April 2022.
With this in mind, now is a great time to consider changing your accounting date, if it’s not already 31 March or 5 April. Making calculations now could lead to simple actions that could save significant tax.
As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like detailed specific advice please contact us.