HMRC are embracing the digital revolution with the introduction of digital tax accounts. From 2016 through to 2020 HMRC will be transforming their services to a fully digital tax system which will provide a simplified and personalised service tailored to each individual and business.
Digital tax accounts will provide individuals and businesses with a real-time view of their tax information in a single location. As of today, five million businesses and ten million individuals already have access to their digital tax accounts.
How will this benefit you?
With HMRC joining up it’s multitude of internal systems, you will have access to a real-time view of your personal and business tax affairs, with the benefit of seeing how it’s calculated. This will allow you to have a complete overview of your liabilities across all taxes.
Businesses will also be able to link their accounting software to their digital tax account by 2020 allowing better financial planning through day-to-day tax management and the end of annual tax returns for most business.
Less Form Filling
Using the information HMRC already holds, along with new data from third parties to populate the digital accounts, form filling will be a thing of the past. You can easily login and check everything is up to date.
Being able to see your tax liability, how it’s calculated and the ability to make one payment rather than multiple payments across many taxes is much simpler.
With digital tax accounts dealing with your tax affairs will seem less of a burden and more like a chore, still no one’s idea of fun (except maybe ours here at Bright Horizon), but more akin to servicing the car or taking the mother-in-law out for dinner.
With a more complete overview of your information, HMRC will be able to offer you access to help and support specifically tailored to your needs and circumstances. I for one hope this will mean an end to the many hours on hold listening to Take That’s ‘Patience’.
For more detailed information, you can read ‘Making Tax Digital’