Tax & Admin

Autumn Statement 2015: Accountants raise doubts about move to online tax

Hannah Wilkinson | 27 November 2015 | 9 years ago

George Osborne unveiled plans for a digital revolution? at HMRC
George Osborne unveiled plans for a digital revolution? at HMRC
Members of the UK200 group of independent accountants and lawyers have responded ambivalently to the digital tax measures announced in the chancellor’s Autumn Statement on 25 November predicting that the policy will increase workload for professionals in both industries.

George Osborne announced on Wednesday that HMRC will require the majority of businesses to keep track of their tax digitally by 2020 and provide updates at least every quarter but tax professionals have raised doubts about the practicality of the proposed move.

John Watkins, a senior partner at chartered accountants Dickson Middleton, said: It is difficult enough to get tax information out of clients in general and stock valuations from farmers in particular once a year, never mind four times a year.

He added that questions remain over the filing deadlines to be imposed on companies to update their record in time and the penalties that late filers would incur.

Rees Russell, a partner at Jonathan Russell, is of the belief that the reforms will result in ‘significant extra work and cost? for taxpayers and doubted that it would result in benefits for firms. But he also praised the proposals for their potential to make it easier for HMRC to catch individuals and businesses who fail to declare income.

The chancellor described the changes as a digital revolution? in his address to parliament and some practitioners are concerned at the scale of change.

Andrew Jackson, head of tax at Fiander Tovell LLP, said: Until we see details of how the system is meant to work, it is impossible to say how successful it will be. Taxpayers with significant non-employment income will have to report it to HMRC quarterly. This is a massive shift from the current system of gathering up your papers and doing a return six months to a year after the year end.

Related Topics

Financial Planning for Small Business Owners
11 September 2023

Financial Planning for Small Business Owners

Read More →
Embracing Sustainability: Eco-Friendly Practices for Businesses
1 September 2023

Embracing Sustainability: Eco-Friendly Practices for Businesses

Read More →
Maximising Productivity: Time Management Hacks for Entrepreneurs
16 August 2023

Maximising Productivity: Time Management Hacks for Entrepreneurs

Read More →
What is Debt Financing?
14 August 2023

What is Debt Financing?

Read More →
What is Straight Line Depreciation and Why is it Important?
11 August 2023

What is Straight Line Depreciation and Why is it Important?

Read More →
Which Employee Benefits Are Tax Free?
10 August 2023

Which Employee Benefits Are Tax Free?

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter