Businesses will need to submit their tax and financial information quarterly using software that's compatible with HMRC's systems.
In a letter to financial secretary to the Treasury, David Gauke, Andrew Tyrie, chairman of the Treasury Select Committee, said that submitting records in a 'prescribed digital format' would bring a financial burden to small firms that currently don't have accounting software or use computers.
In his reply David Gauke said:
"HMRC will ensure that compatible software products are available to suit the budgets and needs of all businesses, including some free products for those small businesses with the simplest affairs."
Managing Digital Accounts
More than 50 million individuals and small business will have access to a digital tax account by 2020 - removing the need to complete an annual tax return.
HMRC aims for all taxpayers to submit their taxes and manage their digital accounts as part of their day to day routine.
Taxpayers can access their accounts at any time during the year. They can use their accounts to do the following:
- check income tax and tax code
- update company details
- track/submit forms online
- check/manage benefits affecting tax
For more information digital tax accounting, contact Elpizo Accountants. We will be happy to advise you.