HMRC has launched ‘Making Tax Digital’, setting out their vision to digitise the UK tax system.
The document introduction by David Gauke states:
“By 2016, every individual and small business will have access to their own secure digital tax account, like an online bank account, that enables them to interact with HMRC digitally. There’s much more that HMRC can do with today’s technology to make tax easier, transforming tax administration into a personalised service, tailored to the needs of each taxpayer. By 2020, businesses and individual taxpayers will be able to register, file, pay and update their information at any time of the day or night, and at any point in the year, to suit them. For the vast majority, there will be no need to fill in an annual tax return.”
Comment from Kevin Hart, BASDA Chair:
“Yesterday’s document both consolidates numerous separate pieces of information that have entered the public domain and confirmed speculation in the industry with regard to timeframe. It is, however, rather light on detail, such as how the many complexities of tax are to be addressed. BASDA is engaged with HMRC and HMT re the new digital accounts’ emerging strategies, with the aim of ensuring fit-for-purpose expectations along with corresponding solutions from the software industry for accountants, businesses and individual taxpayers, and in the right timeframe.”
“Continuing dialogue is critical here to determine exactly what form these may take and critically, ensuring the right fit with customers’ processes. It is here where considerable focus is required to ensure we achieve the right level of alignment and balance between the department’s aspirations and the regulatory burden from the customers and industry’s perspectives and so achieve the best outcomes here.”