End of Annual Tax Returns - It's an end to filing of annual tax returns not the end of tax!

Posted by Capium on Apr 20, 2015 10:46:47 AM

The change that we all saw coming for the past decade or so has finally happened; annual tax returns will soon be a thing of the past! What's that you say? We don't have to file our taxes anymore? Do we still have to pay taxes or are they going away as well?

If you are like many others in the UK, you could find yourself asking the very same questions and wondering where you can get the answers. We assure you that the professionals as Capium are on the story and we have all of the answers you need.

As soon as George Osborne announced the change in the latest version of the national budget, questions arose and many people didn't understand what the change was all about. Taxes themselves are not going away; you still have to pay taxes only the method used to file them at the end of the year will be different.

In fact, the new tax filing method will be so different and so much easier to access, many people have likened the new system to an online bank account. The new system will make it easier for the 11m taxpayers and 1.8m companies who currently fill in an annual tax form to pay the right tax at the right time without filing a return.

What does this mean for personal and business taxpayers? It will mean that people will be able to pay the taxes they owe on a more convenient level by linking it to their personal or business bank account and it means that corporations will no longer face a big end of financial year tax demand because HMRC has calculated their payments on the previous year's information. This also mean that a company's tax details can be provided in real time making the totals more accurate.

When will this switch take place? According to sources at the Treasury, the changeover will begin in early 2016 and be completed by 2020 for all business and personal tax accounts. While this may seem like a long time, you have to take into account that over 12 million people pay taxes in the UK and a change like this isn't something that can be accomplished overnight without any errors. Your patience will be rewarded as, soon enough, you will be able to view your tax information online via your laptop, tablet or smartphone and you will be able to file quickly with a higher level of accuracy every time.

Topics: Tips and Advice, Business Accounting

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