Transformation of the entire taxation procedure by 2020 is the next target set and we are all about to experience a digital evolution in the traditional procedures which will eventually benefit numerous people and companies. Simplifying tax, making tax digital for individual tax payers & businesses and bringing tax in one place are the core elements based on which modifications will occur.
To simplify the tedious process of taxation, a centralized system is to be created where all the information can be viewed and updated thereby providing a customised solution.
Under Making Tax Digital, businesses will be able to know details about their tax liabilities as the proposed system will process tax information in real-time thereby eliminating the hassle of prolonged delay in acquiring the information.
Receiving all the tax information in one place is one of the most awaited features. Review of all the liabilities and entitlements and access to financial data will be feasible through a digital tax account.
Individual taxpayers will now be able to access their digital accounts on any device and they will get comprehensive support through web-chats and receive personalised updates through secure texts.
Major highlights of the proposed system are as follows:
- HMRC are currently conducting a consultation period until 7th November 2016 which also includes webinars that will cover detailed discussions on MTD. You may also book for them by clicking here.
- All the information which is already with HMRC like salary etc. need not be manually entered as the same are automatically populated in your Digital Tax Account.
- Information from HMRC like salary & tax deductions and also the inputs given by Client/ Agent will be merged in the Online Tax Account.
- Use of spreadsheets has also not been completely ruled out; discussions are still on over this.
- Period of quarterly reporting will depend on the starting date of an accounting period for the particular business, and the last date for reporting will be the last day of the upcoming month. For instance, 30th April will be the deadline for the quarter ending of 31st March.
We are comprehensively working on development of features to integrate all the essentials of MTD in Capium.
Stay tuned for more updates on Making Tax Digital