HMRC have introduced Making Tax Digital (MTD) which will become available in 2018. Please refer to our Micro-Site which contains updated information on MTD. Please click on the links below to gain access.
Naturally, taxpayers and firms of accountants will be concerned as to how this new regime will affect them.
We at TaxCalc have already begun to digest the information made available to us by HMRC. We’ve written this Knowledge Base article using publicly available information that will hopefully address your immediate concerns.
We have already opened a dialogue with HMRC to learn more about the future ahead and will no doubt be meeting with their representatives many times over in the coming months.
It is also likely that public consultation will commence on the plans, potentially changing the Government’s aspirations.
We will update this article as and when new information comes to light.
Whilst it sounds like a great soundbite for the Chancellor to make, the documentation states that the tax return should continue into existence until 2020.
By 2016, the Government intend to provide every taxpayer with an online tax account.
Initially, this account will show the taxpayer any taxes due and paid. As development continues, the system will be able to pull information across from other HMRC systems that third parties use to file tax information on the taxpayer’s behalf. A good example of this will be an employer filing payroll information on behalf of the taxpayer.
Information that HMRC do not possess will still need to be reported by the taxpayer to the new system. Examples would include self employment, partnership and rental income.
Ultimately, the taxpayer will be able to see their tax affairs in realtime and advise of amendments to ensure that the right amount of tax is paid on an ongoing basis.
Taxpayers will be able to let a firm of accountants manage their digital account on their behalf.
Yes – absolutely!
You can be assured that TaxCalc plans on supporting taxpayers and accountants in the management of tax affairs in whatever form the future holds. Currently, HMRC relies heavily upon suppliers of software like TaxCalc.
Indeed, some five million tax returns are submitted using software made by third party software developers. The industry is huge and we see no reason why our participation in it should change.
For example, we are certain that taxpayers will want a double check of their tax affairs that we can provide and ensure that HMRC are charging the right amount of tax. In addition, if it’s correct that accountants will need to submit client information on a more routine basis, the management of this will require software to ensure that this is done in an efficient manner. Third party software provides many additional benefits to customers, beyond that supplied by Government systems. We will continue to do so.