On 14 December 2015 the UK issued a document entitled Making Tax Digital. This outlines the future of digital returns and sets out a timetable for phasing in further changes.
By April 2016 individuals and small businesses will have access to a digital tax account giving an overview of their tax affairs. Advice will be available through secure messaging. HMRC is to consult further on how the use information from employers, banks and government departments will allow them to reduce the compliance burden for taxpayers by populating the tax accounts with this third party information.
From April 2018 all businesses, including self-employed taxpayers and landlords, will be required to file quarterly tax returns online. This would apply where income from self-employment or from property letting is the main source of income or where it is a secondary source of income above GBP 10,000 and the main source of income is from employment or pensions.
By 2020 taxpayers will be able to see the position on all taxes in one place, making it easier for them to offset overpayments on one tax against liabilities on others.
The analysis of the information will also enable HMRC to more easily detect non-compliance and will therefore reduce their administration costs.
