It’s coming for you soon. Ian Tongue explains what is happening and what you can do to plan for it.
The biggest shake-up in the tax system since self-assessment is on its way: Making Tax Digital – or MTD – as the taxman calls it.
HM Revenue and Customs (HMRC) estimates that it loses as much as £9bn in each year due to the inaccurate submission of tax returns.
So its new requirements force taxpayers who are paid outside of the PAYE system to electronically disclose their earnings/income more regularly than the current annual tax return or ‘self-assessment’ system. It also affects other taxes such as VAT.
The measures are sold to us as improving accuracy of the information disclosed by pushing taxpayers onto digital record-keeping.
Eventually, this will allow the taxpayer to see all of their tax information in one place in a similar manner to online banking.LOGIN OR REGISTER TO READ MORE……………