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This has been described as the biggest change to business administration since the introduction of VAT in 1973. HMRC has issued consultation documents which will abolish the annual routine of completing a Self Assessment Tax Return. Instead information will be submitted to a Personal Tax Account throughout the year.
This is an online account where information both from the individual and third parties will be deposited. This will mean that HMRC will no longer ask for information to be entered onto a tax return, e.g. P60 or P11D details from an employee or state pension figures, which is already in their possession. This idea is inherently sensible and over one million people have already registered and set one up. However, what is causing some concern is how and when information about business profits or rental income is reported to HMRC.
In short, everybody who currently completes a self assessment tax return.
Instead of completing a Tax Return on an annual basis, individuals will have to submit details of business income and rental income on a quarterly basis and then “confirm” the figures after the end of the year. The deadline for quarterly submissions is within one month, and for the annual submission has to be made within nine months of the year end.
In less than 18 months for some taxpayers but it will be phased:
Numerous documents were issued over the summer, included the following:
We have scrutinised the documents in detail and will be taking part in the consultation process by attending meetings and putting in a written response.
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