Businesses will not be expected to complete quarterly tax returns from 2020, it has been revealed.
Further to HMRC’s digital revolution and several announcements in the Chancellor’s budget, it was thought that all businesses would need to send quarterly tax returns. However HMRC director general Ruth Owen has emphasised that companies will only need to ‘update’ HMRC.
‘Contrary to some reports, this new system will not require businesses to fill out four tax returns a year,’ she said.
Businesses will be expected to keep digital records and update HMRC every three months, but these will be submitted through software which can be integrated with the businesses own record keeping.
In 2018, HMRC plan to introduce the need for businesses to report quarterly Income Tax and National Insurance information, although this is expected to be met using accounting software.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
Image courtesy of alexisdc at FreeDigitalPhotos.net