Tax is Changing
Updated 21st March 2017
NOTE: the information being given from the tax office can change. As soon as we know any changes we will update this page
The Self Assessment is going and Assessment is coming back!
What does that mean?
Cutting to the chase, the government is 'going digital'. Everybody will have there own Digital Tax Account accessed through a Government Gateway Account.
When the new system is fully up and running (see below for when) every self-employed person will have to submit quarterly figures to the Tax Office. Each time you submit your figures, you will get a Tax Bill. At the end of your tax year, you will have to fill in your Tax return as you do now. This is where all your annual allowances and extra statutory concessions can be claimed. You will (currently) have 10 months to submit your year end return and pay any balancing allowances. The Idea behind the new system is to spread the payments instead of having 1 large bill.
When does this happen?
Its happening right now, there are 2 stages to the introduction.
Stage 1 (April 2018):This is for self-employed people that are VAT registered. As VAT registered individuals are use to submitting quarterly figures, they are first. Vat registered individuals will begin being phased in from April 2018.
Stage 2 (April 2019): From April 2019 all other self employed individuals will start to receive notices of compliance from HMRC. When you receive your notice, please let us know.
At Abacus, we are ready to take away the hassle and make the transition as pain-free as possible. If you are worried about the change, please get in touch with the office and we can talk you through it.
For further information on the Digital Tax Account click hear https://www.gov.uk/personal-tax-account