HMRC launches online tax accounts

HM Revenue & Customs (HMRC) are attempting to modernise the country’s tax system as part of a digital strategy. HMRC has launched its services for online tax accounts which will direct more than a million UK taxpayers to the new personal online portal as part of a self-assessment. This new system will eventually replace annual tax returns and will be similar to online banking, according to HMRC. The service will allow people to update their details in real time, provide a clear display of the tax paid, and make it easier to contact HMRC. Payments can be made at any time of the day or year. The roll-out for individuals is being phased in for people currently in the self-assessment system and by summer 2016, the service will be expanded to become an online payment and repayment facility. Users will also be able to look ahead and behind on their tax positions and being able to opt out of paper statements. All personal taxpayers will have personal accounts by April this year, along with all of the UK’s five million small businesses. Two million businesses are already using the new system. HMRC says that the benefit of the new digital tax accounts is that they should stop the build-up of tax due, or refunds owed, at the end of each financial year, with no more surprises or shocks for UK taxpayers. This move will eventually lead to the end of the annual tax return for most taxpayers but you are, of course, still required to confirm that your information is correct and make sure you’ve paid the correct amount of tax. We are here to help, please be in touch if you want to discuss this further. T: 020 7376 9333 E: info@figurit.com    

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