Making Tax Digital
With technology becoming a more prominent aspect of modern life, it is little wonder that HMRC are looking to reinvent the wheel and shift the way they do business into the digital age.
Making Tax Digital has been the subject of discussion for quite some time now, however, recent political changes have meant that we have been left wondering when, or even if, it will come into force.
But what does Making Tax Digital actually mean?
“Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs – meaning the end of the annual tax return for millions.” – GOV.uk
A modern tax system, based on digital technology will make it easier for businesses to get their tax right. Reducing the amount of avoidable errors will also reduce the cost, uncertainty and worry that businesses face when HMRC is forced to intervene to put things right.
What you will be able to see:-
- view personal details and be able to update them
- calculate your PAYE income tax and estimate how much tax you owe
- see tax effects on changes in estimated pay
- inform HMRC of any changes and benefits
- access forms such as national insurance, pensions and benefits
- find out more about marriage allowance entitlement and making claims online
What’s the Latest?
HMRC have made amendments to their original plans which now mean:
- Only VAT registered businesses will need to keep digital records and only for VAT purposes.
- They will only need to do so from April 2019.
- Businesses will not be asked to keep digital records or update HMRC quarterly for other taxes until at least April 2020 (the original dates had implementation from April 2019).
Do you have any questions?
A Wilson Accounting are happy to answer any questions you may have about the information on this page.