Legislate to align the UK tax year with the calendar year by changing it to run from 1 January to 31 December, with a suitable transition period.

The UK's tax year runs from 6 April to 5 April for historical reasons dating back centuries. Aligning it with the calendar year could simplify the tax system, making it easier for taxpayers, employers, accountants and businesses to understand and administer. It could also better align the UK with international practice. We ask the Government to introduce this change following a suitable transition period to allow systems and legislation to be updated.