The End of The Tax Return – Making Tax Digital before 2020

A quick update from Free Agent.

The government is on a drive in an attempt, in HM Revenue & Customs’ (HMRC’s) words, to “Making Tax Digital by 2020”

One of the biggest implications of Making Tax Digital for small businesses is the eradication of the traditional annual tax return.

This will mean that by 2020 most businesses, self-employed people and landlords will instead be required to keep track of their tax affairs digitally and to update HMRC at least quarterly via their digital tax accounts.

HMRC has said that this doesn’t mean you’ll have to complete a full tax return four times a year; you simply need to provide more regular updates online.

The introduction of a ‘real time’ tax system means that instead of reporting information on tax returns and paying liabilities long after the end of the tax year, you will be able to see a real-time view of your tax affairs and liabilities through your digital accounts.

This, theoretically,  should make it easier to understand how much tax you owe and enable you to budget accordingly.

The question is are you or your business ready for Making Tax Digital?

Great if you’re speaking to your adviser about this already, but if not, give me a call on 01909 512 170. Check the team out https://loftusstowe.co.uk/accounting-services/