Budget 2015 – Tax Administration

Abolition of annual Tax Returns

If only the tax system was that simple!

The government has announced that it is going to enter into a consultation process whereby it aims to replace “annual tax returns” with “digital accounts”.  Given that 85% of tax returns are already filed on-line, this is not as radical a change as may first appear and should ultimately be achievable (although it is likely to take longer than the 5 year process that the government has announced today).

We welcome this proposed change, as it certainly makes sense for the government to make better use of digital technology whereby “on-line tax returns” can be pre-populated with information that HMRC already hold, such as earnings from employment (via RTI payroll reporting) and savings interest from banks.  We don’t expect any significant changes to the current tax reporting system in the short/medium term, but do anticipate that with the development (and better use) of digital technology over the longer term, the tax reporting regime will become more efficient, which can only be supported.  Whether taxpayers will be willing to take up the government’s offer of paying their tax early (via their new digital account) is another matter altogether!

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Jan 23

No events today
Dodd & Co have been extremely helpful and supportive from the first meeting we had with them.  After being left in a mess by our previous accountants they stepped in and sorted everything out, from broader business planning to the finer details, with no fuss and kept us informed along the way. They deal with all tasks quickly and efficiently, without prompting from us which has been a huge weight off our shoulders.  The support, advice and service we have received from Alison, Tony and the team at Dodds has far exceeded any expectations we had.  We wouldn't hesitate to recommend them.
-- Gemma Bell, Vincent & Bell Limited