HMRC’s New Online Tax Return System; Making Tax Digital
This brand new service is part of the initial steps towards a fully digitalised tax system.
Tax returns remain an annual burden for many, but this year millions should expect to be redirected to a brand new and user-friendly online tax return system by the end of December to complete their self-assessment.
The service will work as an online banking account – it allows taxpayers to update their details and information in real-time, which provides a clearer view of the tax individuals pay and the benefits they are entitled too.
Users will also be able to discuss their tax affairs through a web chat or virtual assistant.
How Will The New Online Tax System Work?
The new digital tax system allows individuals to see their tax details and make payment at any time of the day or year.
It is initially being rolled out for individuals with the self-assessment system. Onwards, all taxpayers should expect to have personal accounts by April of next year, as will all of the country’s five million small businesses.
“By 2020, HMRC will be a world-leading tax administration that is efficient, effective and easier for customers to use, enabled by £1.3bn of extra investment announced in November’s Autumn Statement… This government is determined to revolutionise how we deliver public services and the tax system is no exception”, said David Gauke, Financial Secretary to the Treasury.
HMRC’s Making Tax Digital’ Proposal
HMRC said there are four cornerstones to HMRC’s Making Tax Digital’ proposal: tax simplification; tax all in one place; making tax digital for individual taxpayers; making tax digital for businesses too.” Effectively, Making Tax Digital will become a key part in ensuring the individual and business owners are fully aware of their tax situation, thus, are able to maintain their affairs.
It comes as the Government seeks to modernise the UK’s tax system, closing many HMRC offices as part of a “making tax digital” strategy. Click here for the most up to date information surrounding this new movement.