UK Annual Tax Returns To Be Phased Out Within 5 Years

George Osborne, Britain’s Chancellor of the Exchequer recently announced on March 18 during his Budget 2015 speech, that annual tax returns will be phased out within five years.

Digital Tax Accounts

Instead, HM Revenue and Customs (HMRC) the United Kingdom’s tax regulator, will be making it much easier for a new company to register and sign up for taxes.

All of the first ten million people and five million individuals will have their own digital tax account by early 2016. Tax affairs will also be combined from taxpayers, banks, employers, and investment firms, into one single account.

The announcement is seen as part of the government’s goal of getting the taxpayer to do more, as HMRC continues to have its resources squeezed by 5 % cuts every year.

Those who are still filing forms will be given guidance and support during the transition to digital, which should ensure they are not left behind.