When is Tax Going Digital?
As the digital world continues to evolve, more and more services are now available over the internet. Booking train tickets to making appointments or internet banking is now easier than ever. As a matter of fact, lots of people are benefiting from the ease and practicality of tax going digital.
In March 2015, there was a transformation of current tax system. This lead to the set up of the digital tax account service from HM Revenue & Customs. This will bring the tax information of a business or individual into one place. The system will make it easier for everyone to register, pay, update, and file tax information using the internet at any time.
The tax system will be simplified by the digital tax revolution.
It’s a centralised system in which people can update and view their information, therefore providing them with an individually tailored service. As a result, you will not have to give your HMRC information that is usually obtained elsewhere. They will collect details from third parties like banks or employers.
Making Tax Digital for Individuals
Since April 2016, everyone can access their digital tax accounts. The individual taxpayers can check and update their tax accounts anytime on any device. In addition, they receive deadline reminders through secure messaging and get support via web chats.
Making Tax Digital for Businesses
Businesses won’t have to wait until the end of the year to know their tax balance. The digital tax system will collate, as well as process tax information in real time manner. Consequently, this reduces tax repayments and liabilities.
Tax in One Place
It’s a system where you will be able to see your tax information in just one place and this may include all entitlements and liabilities. Individuals can now complete and have access on all of their income and tax data through their digital tax account.
When It’s Going to Happen?
It has already started. Many businesses and individuals are now using digital accounts. Currently, Personal Tax Account is being phased in as an alternative to the traditional self assessment tax return. Millions of small businesses and individuals are expected to access their digital tax account.
What You Should Do?
In order to log into your Personal Tax Account, you need to set up a Government gateway account. You will have to verify your identity with the HMRC. This will reduce the possibility of anyone fraudulently accessing your information.
The development of the centralised digital tax system will eliminate tedious form filling. As a result, you will not have to tell different HMRC departments the information that it knows already. As the system is in real time, it will remove unnecessary time delays and show you updated and full calculations whenever you log in.
Would you like to know more about tax going digital? Follow this link to HMRC: