The Government and HMRC remain committed to the "Making Tax Digital" project with more information being sent online to HM Revenue and Customs (HMRC) by employers, pension funds, banks and other institutions.
The next big step will be the introduction of quarterly reporting of income and expenditure by businesses and landlords from 2018. HMRC are currently consulting on a number of proposals to make radical changes to facilitate the introduction of the new regime. We accountants have serious concerns about the timescale; HMRC say "you will not need an accountant to fill out the information on the new system." They are expecting businesses to use new Apps on their Smart phones and Tablets to transmit their data to HMRC.
OVERVIEW OF MAIN PROPOSALS
Small businesses and landlords will be encouraged to prepare their accounts on a cash basis with the threshold for using the basis significantly increased.
The current basis period rules for unincorporated businesses to be reformed.
A new voluntary Pay As You Go (PAYG) system to be introduced to help businesses budget for their tax payments.
The next big step will be the introduction of quarterly reporting of income and expenditure by businesses and landlords from 2018. HMRC are currently consulting on a number of proposals to make radical changes to facilitate the introduction of the new regime. We accountants have serious concerns about the timescale; HMRC say "you will not need an accountant to fill out the information on the new system." They are expecting businesses to use new Apps on their Smart phones and Tablets to transmit their data to HMRC.
OVERVIEW OF MAIN PROPOSALS
Small businesses and landlords will be encouraged to prepare their accounts on a cash basis with the threshold for using the basis significantly increased.
The current basis period rules for unincorporated businesses to be reformed.
A new voluntary Pay As You Go (PAYG) system to be introduced to help businesses budget for their tax payments.
