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
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