The Death of Self-Assessment?
16th August 2017
One part of the HMRC’s Making Tax Digital project that will continue is the objective of bringing together each individual taxpayer’s information in one online place – a Personal Tax Account. For example, banks and building societies will, from April 2018, be required to report information to HMRC earlier and more frequently, than currently. This information will then feed into a Personal Tax Account and will be used by HMRC to estimate tax liabilities. At some stage similar rules will be brought in for PAYE income from employers and pension schemes.
On the face of it this sounds very convenient, and on the whole it should be a positive move. However unless you have complete faith and trust in all the bodies and organisations involved (including HMRC) the figures are still going to have to be checked to make sure they are correct. On top of this HMRC’s line at the moment is that any errors will have to be corrected by the institution that submitted the information, meaning that taxpayers are unable to correct their own tax returns. This throws up all sorts of questions surrounding the concept of self assessment, penalties for late and inaccurate returns and what happens if the originating organisation cannot or will not make the appropriate adjustments. As and when these issues are addressed we will be producing updates.