Digital account timeline overview
HMRC has revealed how it plans to introduce digital tax accounts over the course of the 2015/16 tax year.
First announced in Budget 2015, news that HMRC wants digital accounts to replace traditional annual tax accounts created much debate.
Now, further details of what this transitional process will look have been provided by HMRC:
July – September 2015 – business tax accounts, PAYE update services and married couple’s allowance
October – December 2015 – personal tax accounts for self-assessment and tax credits
January – March 2016 – calculating re-payments for national insurance and PAYE.
HMRC wants to introduce digital tax accounts in order to simplify the process for everyone involved.
Benefits of digital tax accounts
The cost benefits of HMRC running more of its processes through its own IT systems will be a 24% saving on its £800 million annual IT budget by 2020/21.
But HMRC also wants to stress a number of other key benefits to taxpayers:
view and manage their information
pay tax without having to provide HMRC information it already has
digital tax accounts can potentially be linked to business accounting software
simpler and clearer personalised support.
If you wish to discuss how we might be able to help with your tax and accounting affairs please contact us on 020 7330 0000.