Digital Tax Accounts Autumn Statement 2015

Digital Tax Accounts in the Autumn Statement 2015.

Announced in the previous budget, and now confirmed, the Government has confirmed plans to spend £1.3bn on a new tax reporting system for HMRC.

In short, limited companies, self-employed and landlords will be required to keep up to date tax records for HMRC and upload these on a regular basis, we have seen reports that those affected will need to update their digital tax record at least every 3 months.

HMRC will have the funds and resources to develop the system and indeed help to develop free software and applications for us all to use.

This will mean that HMRC has up to date tax information on us all.

What this really means is that instead of the current system of filing tax returns some 10 months after the end of the tax year i.e.  the following January, they will no doubt be collecting taxes on time, the same as they already do for employees under PAYE.  Those that are unlikely to need to maintain digital tax records are pensioners, employed people if they do not have additional income in excess of £10,000pa.

Consultation for digital tax accounts will take place in 2016, with we guess a start date if April 2018 or 2019, no doubt to tie in with all the other proposed tax and tax relief changes that are likely around then.

Autumn Statement Key 'Pension and Investment' Points: