Making Tax Digital – all you need to know
The tax return will be abolished by 2020.
Most businesses and self-employed people will have to keep records digitally and update HMRC more frequently.
Recently the government released 6 consultation documents regarding their Tax Digitalisation strategy from which we can summarise the key proposals here, outline how Casson Beckman can assist with implementing the necessary digital systems and highlight the key advantages that digitalisation will present.
What is HMRC proposing?
- Digital records
Businesses and landlords will be required to maintain their records on apps or software that is compatible with HMRC’s interfaces. HMRC is exploring the possibility of businesses keeping their records on Excel spreadsheets but this method seems unlikely.
- Quarterly reporting and the year end declaration
Businesses and landlords will have to submit information online on a quarterly basis as well as make an end of year declaration through their digital software. The information will be summary information rather than on a transaction basis.
Businesses and landlords with gross income < £10,000 p.a., charities, community amateur sports clubs and the digitally excluded will be exempt from tax digitalisation.
- Voluntary pay as you go
Businesses will be able to opt into a pay as you go system for the collective payment of taxes.
HMRC is considering a simplification to the process of computing and taxing profits. An extension of the cash basis is being proposed, along with the basis on which those profits are assessed in a particular tax year.
To find out more on how this will affect you
please call our Digital Transformation team on 023 9231 3050.
Alternatively you can create a Casson Beckman KashFlow account with us which will enable you to keep your records online and for us to be able to advise you in a real time environment.