The digital world is constantly evolving and businesses have continued to adapt their online services in order to benefit their customers, and improve the functionality of their business.
The government recognised they needed to make significant changes in the way businesses submit their personal information and pay their taxes, as traditional methods have resulted in tax losses of over £8 billion. During the Budget in March 2015, the Chancellor proposed an “end of the tax return” and disclosed plans to make it easier for individuals and businesses to keep abreast of their affairs, by introducing the Making Tax Digital system.
The Making Tax Digital system is a digital service, which will hold all personal and business tax information in one place, making it more accessible for you to register, file, pay and update your tax information online, in real time!
By 2020, HMRC will have in place a fully digital tax system where:
- You will be able to see the information that HMRC holds about you allowing you to check your details are complete and accurate.
- You will be able to check the amount of tax you owe throughout the year, which will inevitably reduce errors.
- You will be able to view your full financial picture of your digital account.
- You and Your agent will be able to interact with HMRC digitally in real time.
- Digital record keeping software will be linked directly to HMRC systems, allowing you to send/receive information directly from their software.
The government have produced a useful factsheet to help you understand more, which also includes the dates in which various phases will happen. Please click on the link below:
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