Did Ken Dodd have the last laugh with the taxman?
The Government’s plans to modernise our tax system are well under way and will soon be affecting:
- Individuals (who have to submit tax returns)
- Self Employed
- Landlords
- All Businesses
- Anyone making a Capital Gain (eg sale of property)
The intention is to do away with the need to submit tax returns and that businesses will need to keep their records using digital tools and send that information at least quarterly to HMRC.
“To err is human but to really foul things up you need a computer” Paul R Ehrich
In truth many businesses are in good shape because they either use specialist Accounting Software (eg Quickbooks, Sage, Xero, etc) or their Accountants/Bookkeepers use such products.
However for the smaller businesses that keep their accounting records manually or on spreadsheets etc the transition is going to be very troublesome.
The cost of purchasing specialist software is relatively inexpensive but the main issue is converting the current processes into a computerised version and knowing how to do it.
For a chat about planning for the changes and ensuring your business is fully compliant, call us on 0800 002 9460 or email info@affordableaccountancy.co.uk
When is all this happening?
Here are some extracts from the Governments published timeline:
Already in place
All of the UK’small businesses and every individual taxpayer already have access to their own Personal Tax Account.
January to June 17
Testing starts for digital reporting of income from property letting
January to June 18
Interest paid by Banks and Building Societies starts to be shown in digital tax accounts.
July to December 2018
Most businesses, self employed and landlords update HMRC quarterly for Income tax and National Insurance through their Accounting Software.
2019
Most businesses, self employed and landlords update HMRC quarterly for VAT through their Accounting Software.
Capital Gains Tax on the disposal of residential properties needs to be paid within 30 days
2020
Most businesses, self employed and landlords update HMRC quarterly Corporation Tax obligations through their Accounting Software.
For more detailed information:
For a view on the penalties that are being proposed:
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