BIM71180 - Computation of liability: The current year basis of assessment rules: Accounts made up to widely varying dates

There may be some businesses in which accounts are consistently made up to widely varying dates each year. In such cases ICTA88/S62 (5) defines a change of accounting date as occurring each and every year.

But the change of accounting date rules only need to be considered each time if the taxpayer chooses to make a notification under ICTA88/S62A (3). If no notification is made the basis period continues to be set by ICTA88/S60 (3)(b), operating by reference to the first 'old date'. So if the trader would prefer to calculate their annual tax liability by reference to a mean accounting date, they can do so by ensuring that the basis periods given by ICTA88/S60 (3)(b) end on that mean date.