The OTS review sets out its analysis of the benefits, costs and wider implications of a change to the date of the end of the tax year for individuals.

There are concerns about the cost implications of any change to the current 5 April year end date.

The costs of change are significant, both in terms of the financial cost and the opportunity cost, the OTS said. Whether moving to 31 March or 31 December, the work involved would consume government and private sector resources and make it much harder to implement other changes at the same time. A move to 31 December could also require changing the UK’s financial year.

The review considers the high-level implications of moving the tax year end date to 31 December, and a more detailed evaluation of the implications of a move to 31 March. It also considers potential short-term practical measures to facilitate the launch of Making Tax Digital for Income Tax.