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HMRC have recently issued 6 consultation documents outlining their proposals for a fundamental change to way they want individuals and business to submit their tax return information. If implemented as planned this will be the biggest change to the tax system since the introduction of Self-Assessment 20 years ago.<\/p>\n
The proposals are to move to a more electronic based system where as much information as possible is automatically gathered directly from third parties. The taxpayer will then only be required to update information which cannot be obtained automatically from elsewhere. \u00a0 However, these updates will have to be made on a quarterly basis instead of the current system of providing information after the year end on the annual tax return.<\/p>\n
By embracing the technology now available, HMRC hope to improve the tax system by:<\/p>\n
HMRC are eager to point out the benefits of the new system to the taxpayer, but if the proposals are introduced as planned the reality will be that many people will pay tax much earlier than they do now and their compliance burden will increase.<\/p>\n
We will be responding to HMRC\u2019s consultation<\/a> and making representations on our clients behalf and invite you to let us have your views.<\/p>\n See our summaries of each of the consultations:<\/p>\n\n