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The government has proposed changes to tax reporting rules which it says will speed up the time it takes the self-employed and small business owners to complete tax returns and prevent thousands of errors. 

The changes to so-called basis periods, which would come into force by 2023, would mean unincorporated businesses being taxed on profits arising in a tax year, rather than profits on accounts ending in the tax year.

A basis period is the time period used by sole traders and partnerships for when they pay tax each year. The majority of companies align that period with the 5 April - 6 April tax year, but some firms, such as seasonal businesses, choose different accounting dates. 

Tax returns are currently worked out from a business' set of accounts up until the end of the tax year. That means companies with an accounting period that doesn't match the tax year could be taxed twice due to having overlapping basis periods. A company's first year of trading is taxed on the period to the end of the tax year, with subsequent years based on their full accounting year.

The rules are particularly challenging for new businesses because they often have an accounting period different to the tax year. 

 for the proposed reform says 7% of sole traders do not have "straightforward" accounting dates, which means around 350,000 could currently be affected. 

The rules are so complex that thousands of businesses make mistakes on their tax returns. Founders can claim tax relief on over-payments but more than half of those entitled to receive the relief do not apply for it. 

 that all businesses be taxed on profits in the tax year, rather than profits on accounts ending in the tax year. This would mirror how other forms of income, such as property income, are assessed. 

The government provided the following example to explain the change:

Impact on businesses of the basis period changes

In the consultation document, the government estimates that around 3% of sole traders and 15% of partners would face an extra administrative cost as a result of the changes. Under current self-assessment rules, businesses would need to submit an estimated return by the 31 January following the end of the tax year, and then make an amendment to it when the final taxable profit for the tax year is known.

The consultation is due to end on 31 August but the Association of Taxation Technicians (ATT) called for the deadline to be extended and the introduction of the reform to be delayed for a year. The group said it fears advisers to affected businesses don't have time to provide sufficient feedback to the government and "the pace of change may overwhelm many businesses".

The ATT's Jon Stride said: "The proposal to tax businesses on profits arising in the tax year itself is sensible and will eventually simplify matters for unincorporated businesses. We also support bringing in the change in advance of the introduction of 

"But it is vital that the design and implementation is fully considered and not rushed if it is going to work for businesses and the government. Given all the current upheaval for businesses, both this change and the MTD roll-out should each be delayed by a year."

Pete Miller, from the Chartered Institute of Taxation, expressed similar concerns.

"This is a welcome simplification of the current system which has been with us in one shape or form since the 1920s, but we are concerned about the speed at which it is being introduced and whether there will be enough time for businesses to absorb the impact of the change on their individual circumstances and take action to avoid any adverse or unforeseen consequences," he said.

"We are also concerned that the government consultation on this reform is inadequate. Six weeks during the holiday season, in the middle of a pandemic, is not sufficient for tax professionals and others to assess the detail of this significant change, how it will affect them and their clients, and provide constructive feedback to government on it." 

To respond to the consultation on the basis period reforms, 

To share your views with Enterprise Nation, email 

I'm a freelance content creator and event host who helps small businesses and the organisations that support them. I'm also Enterprise Nation's Local Leader for Bristol.
I have 19 years of experience as a small business journalist having interviewed hundreds of entrepreneurs from billionaires like Sir Richard Branson to the founders behind brand new start-ups.
I've worked for a range of leading small business publications and support groups, most recently as head of content at Enterprise Nation where I was responsible for the prolific output of content on the company's blog and social media. I now freelance for Enterprise Nation including hosting the Small Business sessions podcast.
I'm based in Bristol where I run and host regular events with the local small business community in my role as Enterprise Nation's Local Leader for Bristol. I also have strong connections with other major business organisations in the south west region.
In total, I've hosted over 100 events including conferences with an audience of hundreds for international brands like Xero and Facebook and live web chats from inside 10 Downing Street.
With my partner, I co-run Lifestyle District, a lifestyle blog focused on culture, art, theatre and photography.

Freelance content creator & event host

Government proposes 'simplified tax reporting' for small businesses but could it add more costs?

Business owners can respond to a consultation on the proposed changes.

In 2015, after working in financial services for almost twenty years, Hannah Jones and her husband Dean became disillusioned by the buzz of corporate life and decided to buy a holiday home where they could escape the hustle and bustle. In their quest to find the perfect property they stumbled upon a business idea: to open their retreat to paying guests. 

Fast forward five years and, on a dark, rainy evening in February 2020, the couple drove excitedly towards the village of Bryncrug in Snowdonia – home to 

. Little did they know that in just a few weeks’ time the UK would be plunged into Lockdown…

Hannah, what first attracted you to Geufron Farm?

To be honest, it was all quite serendipitous. Our initial plan was to buy somewhere in Europe close to a ski resort; somewhere that we could retreat to ourselves for winter sports and summer mountain adventures. We spent three years looking for the ideal spot. During that time I started trail running, and many of the events that I attended were in Wales. I got to know a few people in the local adventure community and then stumbled upon an advert for Geufron Farm. With a farmhouse, a cottage, three barns and 22 acres of land, it was a much bigger project than we’d previously considered; it needed total refurbishment, from top to bottom. But we went to look at it and everything just felt right. I’m sure our friends thought we were mad, but we knew that this special place deserved to be brought back to life.

Of course, the arrival of Covid was pretty scary. It felt like the world had stopped – and we’d just made a huge investment which sat empty on a hillside in Wales. But rather than crumble, we used the time to do additional renovations. It was hard. I was still working a full-time job in financial services and Dean was managing his other business. But eventually, on the 31st July 2020, we welcomed our first guests.

Geufron Farm Wales

From financial services to a farm in Snowdonia – that’s quite a change of direction!

It’s been a huge learning curve. But it’s exactly what I needed after twenty years in one industry. As bookings started to increase and I was taking on more and more work at Geufron Farm I gradually reduced my hours at my previous job. And just a few months ago I took the plunge and left the corporate world behind me once and for all. It’s the best thing I ever did.

So what does a typical day at Geufron Farm look like?

Our day always starts with coffee. We sit outside, take in the views, and plan our morning. Then I walk our two dogs. Mid-morning is all about the admin; I tend to deal with that side of things - booking enquiries, contacting suppliers, managing the finances – and Dean takes the lead on new revenue streams and creative projects. I set aside afternoons for the meatier stuff, like installing a new booking system and planning my new allotment.

On changeover days I am very hands on with our housekeeping team and I check each property personally to ensure everything is just how I would expect it to be if I were a guest. In the evenings I take time out to walk the dogs again, run tests on our outdoor pool - I had to train as a pool plant operator too - and reply to more customer enquiries. I wrap up work around 8pm. It’s a long day, but I get to spend most of it outdoors and I’m answerable only to myself and my guests.

Geufron Farm Snowdonia 1

Speaking of guests – you’re fully booked for the foreseeable future. You must be thrilled…

It feels amazing, and with dozens of 5-star reviews and many returning guests, it’s a real testament to all our hard work. The people who come to stay with us are all looking for time out in nature, whether that’s mountain biking, trail running or spending time on or in the water. We don’t have the huge crowds that other holiday spots do. We’re dog friendly too, so many of our guests come to us because they can spend their downtime with their canine pals. So much of southern Snowdonia is undiscovered so it’s perfect for those looking to retreat from their usually manic lives. It’s such a pleasure to see a new guest arrive, step out of their car, see the view, and visibly relax. That’s what it’s all about!

The views look just incredible – as does the accommodation itself. Having that extra time to renovate during lockdown really paid off!

I can’t take credit for the interior design; that’s all Dean. We also work with a local wood craftsman, 

. Together they’re responsible for a number of unique features around the farm. The kitchen tables are all made from Douglas Fir felled from the local Talyllyn Steam railway. There’s a light in The Barn that’s made from a huge tree root from a neighbouring field. And in The Old Farmhouse there’s a light made from part of a rowing boat which washed up on Tywyn Beach. Touches like this really help to engender our sense of place and love of the area.

Geufron Hannah Jones

You’ve clearly had to learn a lot of new skills along the way. What advice would you give to anyone just starting out on their entrepreneurial journey?

Get comfortable with being uncomfortable. Just because something is unfamiliar, it doesn’t mean you can’t handle it.

I’d actually really love to help other professionals through the mental transition of becoming a small business owner - where you no longer have a large team or company to fall back on.

I’m a qualified business coach and I want to become an adviser on Enterprise Nation some day too. I got to know the team during my time working in financial services, and I was really inspired by the mission to help small businesses. Dean and I have both found the resources on the platform really helpful, and it’s often my first port of call when I have a business question. I love the on-demand webinars too. Running a business means I’m not always able to attend events as they happen, so to be able to catch up when I have more time really helps. Trusted experts are worth their weight in gold.

You seem like people that like to stay busy. What’s next for Geufron Farm?

We have a plan, but it’s hugely flexible. In the first instance, we’re installing bike storage and a fire pit in readiness for the Autumn. Mid-term we have plans for some exciting new accommodation, and Dean plans to train as a SUP instructor so he can take guests out on the local waterways. Ultimately though, we want to ensure that we have a work life balance that really works for us both. And that we get to spend time outside doing our favourite activities with our favourite kind of people. We're looking forward to a bumper year at 

If you're a member of Enterprise Nation and would like to share your win with the community, please 

. We'll be celebrating more of your victories in the coming weeks.

As Enterprise Nation's small business community manager it's my job to make sure our small business members find the support they need, fast. I guide entrepreneurs through every stage of their user journey, matching them with the resources they need to start and grow their businesses, and ensuring a seamless platform experience. I've worked in customer and B2B support for over 20 years and also managed a small business for many years, so I fully understand the challenges involved. I love meeting small business owners and aspiring entrepreneurs and hearing their success stories. Connect with me on the platform and tell me more about you and your small business.

Small Business Community Manager

Meet the entrepreneur swapping financial services for outdoor adventures

Hannah Jones became disillusioned by the buzz of corporate life.

Reaching the end of his career, Bill McGowan decided to not retire to the golf course but to launch a social enterprise instead. He turned his love of bikes into a company that uses a stationary bicycle and a range of fun programmes to boost people’s health and wellbeing. 

The Glasgow-based social entrepreneur shares the story of 

 and how the Amazon Small Business Accelerator e-learning programme has boosted his entrepreneurial skills. 

The free Amazon Small Business Accelerator e-learning programme is advice from more than 30 business experts in over 200 bitesize videos.

If you’re already an Enterprise Nation member, 

. If you’re not an Enterprise Nation member, you can 

join the Amazon Small Business Accelerator for free here

How did you come up with your business idea?  

"I was coming to the end of my career but instead of just retiring, I wanted to use my love of bikes and fitness to encourage people in a fun way to improve their health and well-being. So, I redesigned the smoothie bike concept to provide more fun activities and wrote several programmes for delivering the activities to people of all ages, from children to senior citizens.  

"In order to turn the idea into a business, I had to persuade my target market customers that a smoothie bike was a credible way to improve awareness of the importance of health and wellbeing amongst their stakeholders. Most people tend to see the bike as just a bit of fun, rather than a method of educating, but once they realised the extent to which the bike activities could impart the key messages they wanted to deliver, I got their buy-in. We now have customers from schools and colleges as well as corporates including ScottishPower and Marriott Hotels. 

"The original smoothie bike had a food blender mounted on the back wheel, so it didn’t have a lot of visual impact. We moved it to the front and added a computer to measure the rider’s calorie burn rate, distance travelled etc as a means of showing how much exercise they were achieving. Other activities I have added include virtual reality cycle rides (through places like a Californian pine trail and a Mediterranean beach promenade) to reduce stress/improve mental health as well as resilience. Building lightboxes and illuminating them using pedal-power is a renewable energy and climate awareness activity." 

Why did you decide to run the business as a community interest company (CIC)? 

"At this stage in my career, I was not looking to build a business exclusively to make profit. I wanted to do something that was giving back to the community and helping people to improve their health and wellbeing. The 

 model is a good way for me to do that. I still get a fair salary but the business can give some of its profit back to communities by way of free Fun and Fit Bike sessions.  

"It’s important to remember though that with a CIC, if the business closes, you have to give the assets to another similarly structured business, you cannot keep them for yourself."

What start-up challenges have you faced and how have you overcome them?  

"Like all new business concepts, the challenge I faced was in getting commissioners to incorporate Fun and Fit Bike into their health and well-being programmes. However, I have been able to break through that with my enthusiasm and persistence, resulting in the business now receiving increasing bookings from schools, further education establishments, charities, community groups and companies.  

"Initially, I approached the education sector as I know health and wellbeing learning was an important part of the syllabus in primary, secondary and further education. Some people were a bit concerned that our programmes were not completely aligned with mainstream teaching programmes but after our breakthrough with primary schools, others followed, and we have now run courses for college staff. We have also moved into the corporate sector, assisting businesses to ensure their staff are being encouraged to maintain their health and wellbeing."

Fun and Fit Bike

How has the Amazon Small Business Accelerator e-learning programme helped you? 

 modules have been very helpful because I wasn't sure about how to bring my potential customers from disparate sectors together and to get their attention for the Fun and Fit Bike proposition.  

"I learnt two very important lessons from the videos I watched: 

"1. The need to identify and develop relationships with potential customers who would see the value in my product, which I did initially by sending e-brochures. 

"2. The importance of providing these potential customers with engaging and relevant information about the outcomes that can be achieved from using the product, especially in education environments where educators must demonstrate measure improvement in the resources they commission. I achieved this by researching the objectives educators were set in national education curriculums and showing how they could be achieved, and had been achieved with other customers, using Fun and Fit Bike."

How has COVID-19 impacted on your business? 

"COVID-19 effectively stopped our business but I was lucky to have had some experience in buying personal protective equipment. We were kept busy assisting existing customers to 

"Thankfully, as restrictions ease, we are seeing bookings come back. I believe post-COVID will see an even bigger demand for the health and wellbeing programmes we deliver."

What are your plans for the future of your business?  

"Growth. The health and wellbeing sector is only going to get bigger after the pandemic and my business is ideally placed to develop and own a niche in fun learning as it's a proven way to get better impact and outcomes. We are developing activities to help address issues such as confidence, resilience, anxiety and mild forms of dementia. We have a virtual reality headset that people can use while sitting on Fun and Fit Bike to simulate a therapeutic bike ride in places like Californian pine trails, the promenade in Nice and even around their home using Google Maps."

Which other entrepreneurs inspire you and why? 

"I am inspired by all social entrepreneurs, people who want to help others and the planet rather than just exclusively make money for themselves. For me that’s the best and most worthwhile type of enterprise. And, I believe, fortuitously, the new generation of healthier, more aspirational people of my age group who are not ready to fully retire and not necessarily needing to make money will lead to even more social enterprises being formed." 

What are your top tips for business success?  

"Believe in yourself and your idea. There will be lots of disappointments along the way and it can be easy to get downbeat, lose confidence and give up so you need to be determined.  

"Secondly, it’s really important to be clear about who your target market is and to be good at fashioning your product or service into a proposition that is compelling and different from competitors and other alternatives.  

"Finally, it's crucial to communicate your proposition well and reach the target market. There’s no point in having a great product or service if your potential customers do not know about it!"

I am a marketing professional with a passion for health, wellbeing and social enterprise.&nbsp;

Having successfully ran my own marketing agency for over ten years, as well as having worked for and with many leading companies (Vodafone Group, Kwik-Fit, ScottishTelecom, Reach), I took a decision to start Fun and Fit Bike, a social enterprise business that helps people of all ages to improve their health and wellbeing through fun learning experiences.&nbsp;

Using a newly desgined version of the 'smoothie bike', we help organisations to measurably improve the health and wellbeing of their stakeholders.
​
Our unique, fun experiential learning activity programmes instantly boost mood, morale and mental wellbeing as well as incentivising regular exercise, healthier eating and mindfulness as a means of improving fitness, weight, resilience and productivity.
​
Whether you are a business, charity, community group or place of learning, we can deliver a programme that achieves your stakeholder objectives with measurable results and success.

All our programmes are designed using NHS and WHO guidance.

Have a look at Fun and Fit Bike in action at funandfitbike.com

Founder and CEO

The cycling fan who chose social entrepreneurship over retirement

Bill McGowan shares the story of Fun and Fit Bike.

Lucy is a jargon free, social media trainer and consultant. Lucy is a #SheMeansBusiness accredited trainer and founder of SocialDayUK the UK’s biggest social media marketing festival. Lucy is also a Director at Avviso Media, a digital marketing agency that specialises in content and social media marketing for B2B and events brands. Lucy’s passion is to up-skill women and so set up DigitalWomen with Natwest, a community created to empower 1 Million plus women through digital skills which holds regular events and highlights the great work women are doing in digital and entrepreneurship.

Director

She Means Business: Social media clinic

Lucy is a jargon free, social media trainer and consultant. Lucy is a #SheMeansBusiness accredited trainer and founder of SocialDayUK the UK’s biggest social media marketing festival. Lucy is also&nbsp;a Director at Avviso Media, a digital marketing agency that specialises in content and social media marketing for B2B and events brands. Lucy’s passion is to up-skill&nbsp;women and so set up DigitalWomen with Natwest, a community created to empower 1 Million plus women through digital skills which holds regular events and highlights the great work women are doing in digital and entrepreneurship.

In this&nbsp;free&nbsp;45 minute clinic, your expert trainer Lucy will be on hand to answer your social media questions and run through ideas with you on how best to utilise Facebook and Facebook family of apps for your business.

Since launching in 2005, the Enterprise Nation team has helped thousands of people start and grow their businesses. Led by founder Emma Jones MBE, Enterprise Nation continues to be the most active UK small business community and a leading campaigning voice for small business. Joining Enterprise Nation connects you with resources, community and connections you need to reach your business goals.

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&lt;p&gt;Get free one-to-one digital support from a business adviser on Vodafone's V-Hub, covering a range of topics from how to build an online presence to managing online security risks.&lt;/p&gt;

&lt;p&gt;&amp;nbsp;&lt;/p&gt;

&lt;p&gt;Call 0808 005 7400 or Live Chat for free &lt;a href="https://www.vodafone.co.uk/business/small-business-advice/personal-advice?cid=en-ent/vhub/vhub-adviser-offer/prch/10.2/ntst"&gt;here&lt;/a&gt;&lt;/p&gt;

&lt;p&gt;&lt;br /&gt;
These Business Advisers are available to discuss an array of digital topics including getting your business online, digitalmarketing , digital security and remote working.&lt;br /&gt;
&lt;br /&gt;
That means that they’ll be able to provide you with support and guidance on the following topics:&lt;br /&gt;
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&lt;b&gt;Getting online and marketing digitally:&lt;/b&gt;&lt;/p&gt;

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&lt;p&gt;- Keeping your team productive when working from home&lt;/p&gt;

&lt;p&gt;​- How to give staff remote access to work files&lt;/p&gt;

&lt;p&gt;- VPNs (Virtual Private Networks), and whether you need one&lt;/p&gt;

&lt;p&gt;- Your options on online collaboration tools for your team&lt;/p&gt;

&lt;p&gt;&lt;br /&gt;
Want to access free insight, guidance and support for small and medium-sized businesses – all in one place? Visit the knowledge centre on V-Hub &lt;a href="https://www.vodafone.co.uk/business/sme-business?cid=en-ent/vhub/vhub-meet-up/prch/10.2/ntst"&gt;here&lt;/a&gt;&lt;/p&gt;

Live chat with a Digital expert

&lt;p&gt;Got a burning question on how to create your own website, improve your SEO, or which collaboration tools your business should be using? Click here to Live Chat now with a Vodafone Digital Adviser, for free&lt;u&gt;&lt;font color="#000119"&gt;.&lt;/font&gt;&lt;/u&gt;&lt;/p&gt;

&lt;p&gt;&lt;a href="https://www.vodafone.co.uk/business/small-business-advice/personal-advice?cid=en-ent/vhub/vhub-adviser-offer/prch/10.2/ntst"&gt;https://www.vodafone.co.uk/business/small-business-advice/personal-advice?cid=en-ent/vhub/vhub-adviser-offer/prch/10.2/ntst&lt;/a&gt;&lt;/p&gt;

Request a call back from a Digital expert

&lt;p&gt;If you&amp;rsquo;d like a call with a digital adviser but now is not a good time to chat, use the button above to request a call back from an expert adviser who can help on all things digital.&amp;nbsp;&lt;/p&gt;

&lt;p&gt;&amp;nbsp;&lt;a href="https://www.vodafone.co.uk/business/sme-business/small-business-advice/request-callback"&gt;https://www.vodafone.co.uk/business/sme-business/small-business-advice/request-callback&lt;/a&gt;&lt;/p&gt;

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&lt;/ul&gt;

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