PERSONAL TAX ACCOUNTS will be available online to the British public from mid-December.
The accounts are intended to offer taxpayers a joined-up view of their tax position, enabling instant updating of their information, alongside new services such as ‘web chat’ and a ‘virtual assistant’.
The announcement comes as part of the ‘Making Tax Digital‘ launch by financial secretary to the Treasury David Gauke (pictured) at HMRC’s stakeholder conference in London – with HMRC aiming to offer a fully digital tax service by 2020.
“Giving customers the ability to manage their tax affairs online is our latest step towards a fully digital tax system. This government is determined to revolutionise how we deliver public services and the tax system is no exception,” said Gauke.
“By 2020, HMRC will be a world-leading tax administration that is efficient, effective and easier for customers to use, enabled by £1.3bn of extra investment announced in November’s Autumn Statement.”
There are four key planks to the Making Tax Digital offering:
- Tax simplification
- Tax all in one place
- Making tax digital for individual taxpayers
- Making tax digital for businesses
Advisers have previously questioned the ambitious timetable that had been set to digitise the tax system, warning that HMRC has a less than impressive record of managing and implementing IT projects.
“I’ve yet to see HM Revenue & Customs display any capability whatsoever that it would be able to cope with monthly figures,” Elaine Clark, founder of CheapAccounting.com, told Accountancy Age in March.
The ATT had previously expressed concern that the legislation was overly complex and created unnecessary complications within the practical working of the new allowances
Introduced in 2013 to encourage R&D investment, the scheme allows UK businesses to pay only 10% corporation tax on profits derived from any UK or certain EU patents
Yet, KPMG’s annual survey shows that the UK is still an attractive place to do business, despite falling in rankings in tax competitiveness and FDI appeal
Following recent issues with HMRC’s personal tax computation software, Brian Palmer of the AAT questions whether the government’s implementation timeframe for Making Tax Digital is realistic