‘Adapting to change – Digital Tax Accounts’
•Download as PPTX, PDF•
1 like•748 views
The proposed introduction of Digital Tax Accounts will be the biggest transformation in the history of our tax system. Are you ready to embrace the changes?
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (11)
Similar to ‘Adapting to change – Digital Tax Accounts’
Similar to ‘Adapting to change – Digital Tax Accounts’ (20)
More from Martin Jack
More from Martin Jack (20)
Recently uploaded
Recently uploaded (20)
‘Adapting to change – Digital Tax Accounts’
- 2. Chartered Accountants Chartered Tax Advisers Business Development Specialists
- 3. Adapting to change: Digital Tax accounts
- 5. The most significant single change affecting individuals and small businesses in the history of our income tax system
- 8. “During this Parliament, HMRC will make fundamental changes to the way the tax system works — transforming tax administration so it is more effective, more efficient, and easier for taxpayers.” David Gauke MP Financial Secretary to the Treasury
- 10. “Much more than simply adding digital tools to the current system; it is about transforming the UK tax system” - David Gauke MP Financial Secretary to the Treasury
- 11. • 50 million individuals will have their own Digital Tax Accounts • Pre-populated by HMRC • Everything in the one place, including Child Benefits, State Pension forecasts, tax paid • All taxation will switch to online communication
- 13. • 4 quarterly “updates” will be required each year • From April 2018, all small, non-VAT registered businesses and landlords must comply with the new digital reporting rules • From 2020 this will apply to all businesses, including companies • Mandatory digital record-keeping
- 14. • Quarterly returns(?) - similar to VAT or RTI/PAYE systems • Online billing, aligning payments with profits made (Pay as you go) • Tax potentially payable monthly, quarterly or by Direct Debit • ‘Real-time’ • HMRC access to bank accounts?
- 15. ‘Single Business Service’ Don’t believe the Government spin
- 16. Case study: Self-employed; sole-trader Sporadic turnover Not VAT-registered No employees Poor record-keeping
- 17. Case study: Self-employed; sole-trader Large turnover VAT-registered Has a number of employees Boxes of receipts & invoices
- 19. Case study: Director & Shareholder Salary Company dividends Bank interest Receives Child Benefits Pays personal pension contributions
- 20. Case study: Landlord 2 Furnished properties £500 per month gross rents x 2 Buy-to let loans Joint title
- 21. Bookkeeping survey of 500 businesses across the UK: • 25% use software currently • 25% use a paper-only system • The rest employ a mixture of both or use packages such as Excel
- 22. • ‘Quarterly tax reporting a threat to small businesses’ • ‘Small firms will struggle with new quarterly tax returns’ • ‘This should be a voluntary scheme for small businesses’ • ‘HMRC should undertake an impact assessment and consultation exercise’
- 23. ‘Should be a matter of choice and should not be made mandatory’ ‘Businesses should be able to move to digital over time’
- 24. Your call to action: • Ditch the bad habits • Adopt good practices • Bookkeeping • Embrace software • Change now
- 25. Thank you for listening
- 27. @TheBusJourney #SMEJourney The BusinessJourney Thank you for your attendance. Next event 30 August 2016