In the recent Budget the Chancellor announced that the tax return as we know it is coming to an end. This does not meant that income and gains will no longer need to be declared; there will be a new, simpler system in place – the digital tax account. The accounts could be in operation from early 2016 and ensure that tax details such as pensions, employment and savings income is held in one place. Its no real surprize when you think of the requirements of real time payroll submissions too.
It will be 2020 before the system is fully up and running for all SMEs and individuals however this is seen as a step in the right direction to reduce the administrative burden for the average UK taxpayer and hopefully see the end of the ‘January rush’ to complete returns.
However a word of caution – as with real time there may be a move at some stage to real time self-assessment payment! Just our hunch!