Select committee: Finance Bill Sub-Committee
Conclusion 34
2nd Report - Basis Period Reform and Uncertain Tax Treatments
Published 15 Dec 2021
Paragraph 141
Finance Bill Sub-Committee Draft Finance Bill 2021-22 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
The publication of final guidance on the new requirement must be prioritised so that it is available to businesses well in advance of 1 April 2022 to help them prepare for this new obligation. It is vital that this guidance is clear and unambiguous.
From: Finance Bill Sub-Committee, 2nd Report - Basis Period Reform and Uncertain Tax Treatments, paragraph 141, 15 December 2021
Government response
The government responded to the whole report on 2 February 2022 (deadline 15 February 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government accepts two of the Sub-Committee's recommendations and partially accepts six, with the cover letter stating it "welcomes" the view that basis period reform should continue.
- On overlap relief and guidance, the Government "cannot commit" to the 5 April 2022 deadlines, but commits to publishing basis period reform guidance "as soon as possible after Royal Assent".
- It does not accept deferring Making Tax Digital for businesses without a 31 March-5 April year end, saying it "cannot justify differential treatment purely based on the date accounts are drawn up to".
- On provisional figures, the Government is "planning to explore" the issue with stakeholders from late February 2022, with a decision on whether and how to introduce an easement "by autumn 2022".
- On uncertain tax treatment, it commits to monitoring the regime and will explore a third trigger through informal engagement, with any decision "subject to full parliamentary scrutiny and debate".