f
l
TAGS
H

Making Tax Digital - Part 2

Making Tax Digital for individuals

  • The Personal Tax Account enables individual's information to be stored in one online place.
  • Individuals are entitled to access the service at any time that suits them best from a digital device of their choice.
  • The Personal Tax Account also allows customers to see how much tax is required to pay and to update their information if required.
  • Currently, HMRC receives information from a variety of sources; these are held on separate stand-alone systems. As a result, customers must send a Self-Assessment tax return annually; this doesn't only cause mistakes to occur, but also rather inefficient.
  • The main goal will be for customers to not even be obliged to complete tax returns at the end of the financial year. Not only does this prevent mistakes to occur, also increases efficiency and individuals don't have to individually fill in a Self-Assessment tax return form.

Making Tax Digital for Businesses

  • In the UK, over the last year approximately £8bn hasn't been collected due to avoidable taxpayer errors. These mistakes don't just simply charge the public; in fact, it also creates cost, uncertainty and concern when HMRC are required to consider the matter in depth.
  • The digital record keeping and quarterly updates introduction will reduce majority of the mistakes made; it will help steer clear of errors with digital nudges, it will also give businesses a clearer view of their tax position and allow smaller businesses to meet their tax obligations at minimum cost.
  • In general, technology is moving forward, and always renovating the way individuals and businesses operate; as a result, in the 21st century, it will only be right to abolish a paper-based tax system.
  • On the other hand, HMRC can't force businesses to go digital if they genuinely can't, however the organisation will help those with alternative procedures.
How can we help?

At Expert Accounting & Finance, we are a group of friendly and dedicated individuals with a recognised level of technology experience! We are highly skilled using our online accounting software to meet your requirements and if the above change has caused some uncertainty in your mind, then please don't hesitate to contact us at info@expertacc.com or call us on 0208 887 2437.

We look forward to hearing from you!