Planning to bring individual and businesses tax system into one digital set up, the Chancellor proposed Digital Tax System in March 2015 making it easier for individuals and businesses to register, pay, update and resolve all their tax issues. In 2015, more than two million businesses started HMRC digital accounts. As per the plan, tax payers will be able to access digital accounts, get reminder of digital accounts, support through online chats and deadline reminders by secure messaging system.
This single centralised Digital Tax System is targeted to lessen the burden of taxpayer’s repetition or filling of information which HMRC might already have in its record.
This Digital Tax plan needs your information at least quarterly. Whenever you log in, you will be able to get up to date tax calculation. It is estimated that by 2020, businesses will be moving towards digital records. Obviously for businesses, it will make them extra conscious to plan on their payables. This slightly controversial system is thought to ease many HMRC services on tax issues.
By 2020, this HMRC digital tax management will be the most advanced tax administrations in the world. Individuals and businesses should compulsorily changeover to online accounts whose annual income is £10,000 or more.