Tax returns 4 times a year coming soon

[stevey1983]

Heard about the proposals from the government for having to submit tax returns 4 times a year? More money to payout on accountants

 

[Octopus]

Heard about the proposals from the government for having to submit tax returns 4 times a year? More money to payout on accountants

This is INSANE - but under discussion and I suspect we will be making 4 payments per year to HMRC rather than 2 payments...

It will only make more people avoid tax...

 

[Andy78]

Aren't VAT returns already done on this basis ?

 

[Octopus]

Aren't VAT returns already done on this basis ?

yes.

It would seem that HMRC want to "simplify" the whole lot and make ALL payments 4 times a year......

 

[GMES]

Yeah Vat is the same every quarter so it may make life easier but as already said more paying out on accountants

 

[Andy78]

Can anyone point me to a Electrical Trainee accountancy course. I just had a great idea for a new business...

 

[IrishSpark]

Can anyone point me to a Electrical Trainee accountancy course. I just had a great idea for a new business...

I think you should check out today's Wowcher:


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[Dynamoaccounts]

This is the HMRC trying to get onto digital accounting, been delayed for another consultation period and is being opposed by the accounting bodies as unworkable. I can see it going down the route of paying for tax every quarter on the same basis as the VAT returns with a balancing payment but this is adding a further admin burden on the smaller business.

 

[telectrix]

not a problem for me. just means saving a few more smoke packets.

 

[Deleted member 26818]

For any that work under the CIS scheme, it will mean a tax rebate every quarter.
I wonder if they intend dividing the tax free allowance into quarters?

 

[Dynamoaccounts]

Potentially that's what could happen, with the tax calculated on a cumulative basis in the same way as PAYE then a final adjustment on the final quarter for any under/overpayments.....much in a similar way to the annual VAT scheme. Many people struggle to get their records in time for self assessment once a year so the additional burden of this being done quarterly is going to require quite a culture change.

 

[Octopus]

I think HMRC will go to 4 payments per year. This is what this is about imho

 

[GMES]

I was chatting with my accountant last week about this and he said it will not happen, don't know if he knows something we don't but he seemed pretty confident that it's not going to come to fruition.