So, for taxpayers with just these types of income the job is nearly done.
This new system is suggested to be in place by 2020 and removing these taxpayers from the list of returns would be sensible.
As for the rest of us with income from business, dividends from unlisted companies, rental income and capital gains? One wonders how this could ever be achieved without some mind-reading from HMRC .
But, how accurate are most business records? From experience, let me tell you, very few. I would fear for most businesses who chose to submit their own records direct to HMRC, let alone give them access to their bank accounts (which has been suggested!).
So, relax for the time being, more records are becoming digitalised and no doubt in due course there will be changes that could simplify the provision of information to HMRC. We shall have to be sure that returns are assessed accurately and HMRC are not well known for getting things right first time.
If we can avoid that dreadful rush in January then nobody would be more pleased than the accountants of this country. Meanwhile, we press on partly electronic and partly using ye olde paperwork.
At the moment, we are trying to figure out how it works!
If you have concerns about preparing your tax return for 2014/15 do let us know immediately. The secret to stress free returns is to gather the information as it arrives and ensure it is all in one place before attempting to prepare your return.
Carole Jordan FCCA is the MD and founder of BusinessHeads providing accounts, tax and consultancy to small businesses in Brighton and London. Contact her on 01273 882200.
All details above were correct at the time of publishing - for more up to date information please
get in touch
HMRC have released their new advisory fuel rates for drivers of company vehicles. These came into effect from 1st July and allow reimbursement of fuel tax free at these levels.
Nobody wants to pay tax on divorce. So how do you keep your tax bill down while coming to a sensible arrangement with your spouse?
Since the change to Dividend tax came in you may be wondering if there are more tax efficient ways of drawing funds from your company. Read more for an idea that can save tax each year.
I love the summer for sitting back and reflecting on the year. Thinking back to the dark days of winter and forward to the joy of Christmas time. Now is the ideal time to review how your business is going and as you revive yourself through holidays and sunshine you’ll be well placed to make any changes come the autumn.