Income Tax (Trading and Other Income) Act 2005 section 211

Treating middle date as accounting date

Section 211 allows traders who prepare accounts to a particular day of the week (rather than a fixed calendar date) to elect a fixed "middle date" as their accounting date, preventing the change of accounting date rules from being triggered each year.

• Where accounts are drawn up to a particular day (e.g. the last Friday in September) rather than a fixed date, the actual accounting date may fall on any of 7 consecutive dates (or 8, if in February due to leap years)
• The trader may elect for the fourth of those consecutive dates — the "middle date" — to be treated as the accounting date for that tax year
• The election only has effect for the basis period rules in Chapter 15 and does not affect any other tax provisions
• The election must specify the day to which accounts are drawn up and the middle date, and must be made by the first anniversary of the normal self-assessment filing date for the relevant tax year

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