[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-664047-105":59,"doc-detail-664047-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","finance-bill-2021-22-clause-7-and-schedule-1-abolition-of-basis-periods-executive-summary-att","Finance Bill 2021-22 - Clause 7 and Schedule 1 - Abolition of basis periods - Executive Summary - ATT","","Executive Summary and supporting sections set out the Association of Taxation Technicians’ view on Finance Bill 2021-22 Clause 7 and Schedule 1, which abolishes the current basis periods rules for sole traders and trading partnerships. The document expects reduced complexity for some new businesses but warns of increased complexity, administrative burdens, and costs for businesses that do not align accounts to the tax year. It stresses the need to adequately resource HMRC, limit practical impact, communicate changes—especially for unrepresented taxpayers—and carefully manage transition effects on allowances and charges.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/finance-bill-2021-22-clause-7-and-schedule-1-abolition-of-basis-periods-executive-summary-att/664047/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/finance-bill-2021-22-clause-7-and-schedule-1-abolition-of-basis-periods-executive-summary-att/664047.png","ImageObject",300,407,{"name":92,"@type":93},"Rhys","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-10-29",true,{"@type":102,"interactionType":103,"userInteractionCount":8},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What change does Finance Bill 2021-22 Clause 7 and Schedule 1 make to basis periods?","Question",{"text":112,"@type":113},"It abolishes the basis period rules so that, from 6 April 2024, tax for sole traders and trading partnerships is based on profits earned in the tax year rather than the accounting period ending in that year.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Which businesses are most concerned about increased burden under the reform?",{"text":117,"@type":113},"The document highlights businesses that do not draw up their accounts in line with the tax year, which may face higher tax bills over up to five years and ongoing increases in administrative burdens and costs.",{"name":119,"@type":110,"acceptedAnswer":120},"Why does the document emphasize HMRC resourcing and support?",{"text":121,"@type":113},"It notes HMRC has acknowledged a six-month backlog after Brexit and Covid schemes, and argues the new changes will add burdens for both taxpayers and HMRC, requiring adequate resources and support.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},664047,1793237961,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":8,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":81,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":129,"read_time":39},687207024643,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","Finance Bill 2021-22  \nRepresentation from the Association of Taxation Technicians (ATT) Clause 7 and Schedule 1: Abolition of basis periods  \nExecutive Summary  \nWhilst this reform may remove some of the complexities of the current basis periods regime, especially for new businesses, it will bring increased complexity, administrative burdens and costs for the minority of businesses who do not draw their accounts up in line with the tax year. HMRC need to focus efforts on limiting the practical impact on these businesses as much as possible.  \nWhilst we welcome the government’s decision to defer this reform until 2023/24, we remain concerned that it will take effect just a year before the introduction of Making Tax Digital for Income Tax Self-Assessment. The introduction of two large reforms to income tax calculation and reporting in the space of two years will place a significant burden on all involved. We have serious concerns as to whether taxpayers, agents and HMRC will be able to cope.  \nHMRC must be adequately resourced to support taxpayers and their agents throughout this time. HMRC have recently acknowledged a six-month backlog of work which has resulted from the heavy demands placed on the department as a result of Brexit and operating the various Covid schemes. These additional changes will add to the burdens of both taxpayers and HMRC.  \nBackground  \n1.1. Under the current basis period rules, the income tax paid by sole traders and trading partnerships in any tax year is based on the profits earned in the accounting period ending in that tax year. The accounting period end chosen by these businesses therefore directly affects which profits are taxed in each tax year.  \n1.2. Clause 7 and Schedule 1 abolish these basis period rules such that, from 6 April 2024, the tax payable by these businesses will instead be based on the profits which they actually earn in the tax year.  \n1.3. The majority of sole traders and partnerships1 already draw up their accounts to align with the tax year, and therefore won’t be affected by this change. However, those businesses that don’t draw up their accounts in line with the tax year will face an increase in their tax bills over a period of up to five years, as well as ongoing increases in administrative burdensand costs.  \n1.4. This reform was the subject of a short HMRC consultation over the summer of 20212. In our response to that consultation3, we called for it to be delayed from its originally planned introduction date of April 2023 to allow further time for consultation. We therefore welcomed the announcement of such a delay by the Government on 23 September 2021. However, as set out in section 2 below, we consider that it is vital that HMRC make use of  \n1 93% of sole traders and 67% of partnerships according to the HMRC consultation published on 20 July 2021  \n2 [https://www.gov.uk/government/consultations/basis-period-reform/basis-period-reform-consultation](https://www.gov.uk/government/consultations/basis-period-reform/basis-period-reform-consultation)  \n3 [https://www.att.org.uk/technical/submissions/basis-period-reform](https://www.att.org.uk/technical/submissions/basis-period-reform)  \nthis extra time to further explore how the practical and financial impacts on affected businesses can be limited.  \n1.5. Our response to HMRC’s consultation also highlighted concerns about how any extra profits arising on the changeover to the new regime could affect existing allowances and charges, such as the tapering of the personal allowance for high earners, and the High Income Child Benefit Charge. We therefore welcome that the legislation has been revised to reduce the impact on these allowances and benefits.  \n2. Complexity and HMRC resources  \n2.1. This reform is being introduced by the Government as a supposed simplification measure. Whilst it may simplify the existing rules for some – especially new businesses – this needs tobe weighed against the significantly increased complexi","cbCaieTc9HCtdC7R","https://ap.wps.com/l/cbCaieTc9HCtdC7R","pdf",469988,"English","# Executive Summary\n# Background\n# Complexity and HMRC resources\n## Practical process for estimated profits\n## Businesses affected by accounting dates\n## Unrepresented taxpayers and information campaign\n# Timetable and pace of change","[{\"question\":\"What change does Finance Bill 2021-22 Clause 7 and Schedule 1 make to basis periods?\",\"answer\":\"It abolishes the basis period rules so that, from 6 April 2024, tax for sole traders and trading partnerships is based on profits earned in the tax year rather than the accounting period ending in that year.\"},{\"question\":\"Which businesses are most concerned about increased burden under the reform?\",\"answer\":\"The document highlights businesses that do not draw up their accounts in line with the tax year, which may face higher tax bills over up to five years and ongoing increases in administrative burdens and costs.\"},{\"question\":\"Why does the document emphasize HMRC resourcing and support?\",\"answer\":\"It notes HMRC has acknowledged a six-month backlog after Brexit and Covid schemes, and argues the new changes will add burdens for both taxpayers and HMRC, requiring adequate resources and support.\"}]","Finance Bill 2021-22 - Clause 7 and Schedule 1 - Abolition of basis periods - Executive Summary - ATT | PDF"]