The Government is implementing a big change to the way you manage your financial affairs. By 2020, all individuals, landlords and businesses will have to submit tax returns online. The aim is to bring all the information HMRC holds about you and your business together in one place, simplifying the process with a personalised digital tax account. The days of spending hours on end filling in bureaucratic paper forms will soon be over.
As a business owner you’ll be required to submit your financial data every quarter, rather than every year, with tax due and any money owed to you calculated in real time. The system has been designed to be as easy as possible to use and you’ll be able to access your account with a mobile device in case you work on the move.
The new system will ensure you don’t need to provide HMRC with data it has already, and will calculate your tax liabilities instantly to avoid any nasty surprises. It also means that if HMRC can take your information from elsewhere, you won’t need to provide it yourself. You’ll also be able to update your details immediately, so there’s no need for lengthy phone calls. If you do need support though, there’ll be a new webchat function, allowing you to communicate with an adviser through a secure messaging system.
Amid concerns that the new system was being rolled out too quickly, the Chancellor announced in his Spring Budget that the change will be brought in more gradually than was originally planned. Only businesses with a turnover above the VAT threshold will now be required to use the system for income tax returns from 2018. This requirement will then be extended to all businesses and landlords from 2019, when some businesses will also be required to begin submitting their VAT returns through the system.
For more information on tax returns, contact us at Dunkley’s today on 01454 619900 or by emailing advice@dunkleys.accountants.