Tax Returns will become a thing of the past.
As part of the Government’s vision to modernise the tax system, tax returns will be replaced by digital tax accounts for millions of individuals and businesses. They will bring together each taxpayer’s details in one place, just like an online bank account, so they can register for new services, update their information, and understand quickly and easily what they need to pay — without ever having to complete a tax return again.
By early 2016 five million small businesses and ten million individuals will have access to their own digital tax account, and by the end of the next Parliament every individual and small business in the UK will have one. The digital accounts will be simple, secure, personalised to the taxpayer — and accessible through the digital device of their choice.
As time goes on, they will offer more and more services. This will be one of the biggest-ever changes to the way that people manage and pay their taxes. HMRC will make smarter use of the data it holds, linking it up in ways that weren’t previously possible, so that HMRC does more of the work that taxpayers currently have to do for themselves.
In future, people will only need check their tax information online to know how much they owe. Millions of people will no longer have to complete a tax return at all — while those with more complex tax affairs will be able to use their account to declare income and pay tax in year. It will also be a major help for small businesses, which will be able to link their accounting software to their personalised tax account and have the option to pay as they go. This will give them more certainty about what they need to pay and when, so they can manage their cash flow better. They will also have access to a wider range of government support via a new Single Business Service.
For more information relating to this follow this link:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/413975/making-tax-easier.pdf
