Annual tax returns to be abolished
All the organisations and individuals will now save the time and energy expended on documenting yearly self-assessment. They will soon be provided with a computerised record to enable them to pay their tax with lesser effort.
George Osborne, the Chancellor, as of late declared that online accounts recording real time data would supplant paper tax returns. He stated that it will take effect in 2016. It will replace Annual tax returns once 10 million individuals and 5 businesses switch to the new accounts. The plan is to complete the switchover by 2020.
What are the advantages?
The new system will do the necessary calculations for you. The system will enable you to easily submit your records using smart phone, tablets or computer. According to the Chancellor, the new system will eliminate the stress of filing the annual tax return, as well as budgeting for and paying a large tax bill at the end of the year. The Chancellor called this new system “A revolutionary simplification of tax collection”.
Citizens will have the opportunity to log into their online accounts and enter their information to access their tax bills anytime they wish. The system also enables individuals or organisations to pay their tax bills anytime they choose to. Data like salary details, pension information and bank details will be automatically added by HMRC. The procedure will be mechanised wherever possible, and will also enable organisations and individuals to link their bank details and software for accounting to their HMRC online accounts.
Who currently completes tax returns?
It is quite important to complete a tax return. In case you are uncertain and you need to know more about tax return, it is advisable to seek professional advice from an expert.
Any individual who is independently employed must complete an assessment form every year. Below are individuals and companies that need a tax return;
• Individuals or companies whose expenses or income are £2,500 or above
• Individuals who earn £100,000 or more
• Individuals earning £50,000 and at the same time receiving child benefit
If you are uncertain whether you are qualified for self-assessment, contact us here at The Cheap Accountant for detailed information.