HMRC plans to move paying your tax online by 2020

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

HMRC can now confirm that under Making Tax Digital:

  • businesses will now be able to continue to use spreadsheets to record receipts and expenditure, which they can then link to software to automatically generate and send their updates to HMRC – this was requested by a wide range of stakeholders, particularly small businesses and the Treasury Select Committee
  • free software will be available to the majority of the smallest businesses
  • businesses that cannot go digital will not be required to do so
  • all self-employed businesses and landlords with a turnover under £10,000 a year will not have to keep their records digitally or make quarterly updates, but can do so if they wish
  • the option to account for income and expenditure on a simple ‘cash in, cash out’ basis will be extended, helping an extra 2.5 million self-employed businesses and unincorporated landlords
  • charities will not have to keep their records digitally or make quarterly updates
  • customers will have at least 12 months to become familiar with the changes before any late submission penalties will be applied; following feedback from respondents, HMRC will also consult again in the spring on a new penalty model
  • HMRC will pilot these digital systems with hundreds of thousands of businesses before rolling them out to ensure the software is user friendly, and to give businesses and landlords time to prepare and adapt

Source: HMRC


Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

Business Strategy

Understanding Your Balance Sheet

To understand the financial position of a business at a specific point of time, look at the balance sheet. The balance sheet may also be