“End of self assessment return and new burdensome digital tax reporting to HMRC.”
Major changes are being made to the way in which all taxpayers interact with HM Revenue & Customs (HMRC). The Making Tax Digital initiative aims to reduce tax return errors by making the system more integrated, efficient and real-time. Taxpayers would have to submit digital returns at least five times per year.
On the current schedule, the self-employed and those with rental income as their main source of income (or, where it is a secondary source, if it is £10,000 or more), will be expected to update HMRC with business information for tax purposes at least quarterly from April 2018, with SMEs following by 2020.
However, the Budget 2017 conceded that one-man bands whose turnover is below the VAT limit can have an extra year before Making Tax Digital applies does not go far enough, HMRC has been told
We will keep this page updated with the latest information from HMRC.
