In the March 2015 Budget, the Chancellor George Osbourne introduced plans to replace the annual self-assessment tax return with "digital tax accounts".
A digital tax account will be a very secure online account with HMRC, which will give a tax-payer an up to date picture of where they stand with their tax position.
When a tax-payer logs into their tax account, they will see a calculation of how their tax is calculated by HM Revenue & Customs. The account will be automatically updated with information from the tax-payers employers, the Department for Work and Pensions, pension provider and bank.
From 2016 small businesses and individuals will be able to submit accounts throughout the year online. Tax-payers will also be able to pay their tax at any point throughout the year.
Small businesses will be able to link their digital tax account with their accounting software.
For further information on digital tax accounts please do not hesitate to contact us
Digital Tax Accounts Website
We have set up a website dedicated to the new digital tax accounts and will keep this updated as HMRC rolls out the initiative. You can visit the website at www.digitaltaxaccounts.uk