HMRC to scrap yearly tax return

HMRC to scrap yearly tax return

"Getting rid of the annual tax return by 2020 could save HMRC over £8bn per year, the authority has said. Under the proposals, part of its Making Tax Digital project, taxpayers will keep the Revenue updated online on a continuous basis, rather than filing a yearly return. Jim Harra, HMRC's director general, customer strategy & tax design, said: "The appetite for digital services is growing and traditional paper-based processes make no sense in the 21st century where the vast majority use digital services. Making Tax Digital will help businesses to get their tax right first time; it will help reduce the likelihood of errors." The Daily Telegraph (01/02/2017)

This does not mean less work for taxpayers and small businesses. Continuous basis means not just filling the forms in once a year but rather reporting all business income and expenditure quarterly or possibly monthly. Neither does producing and submitting your accounts electronically guarantee accuracy or indeed a better understanding of the tax legislation. Rubbish in Rubbish out.

We can help smooth the transition to digital tax returns and accounts with market leading software solutions and support.

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