Small businesses will soon be granted the facility to file their tax returns over the telephone, following recent changes to the Government’s initiative to turn tax returns digital by 2020.
Previous plans of introducing digital tax accounts have been revised, after studies proved that 2 in 5 self-employed workers in the UK had no internet access, or had difficulties using digital tools.
Financial Secretary to the Treasury, David Gauke, has said:
“Going digital will just not be an option for some people. Businesspeople who genuinely can’t use digital tools – because they can’t access broadband, or don’t own a computer or smartphone – will have to be offered alternatives, like nominating someone else to update their information for them, or giving information by phone. So there’s nothing for businesses to fear in this new system.”
Before today’s debate in Parliament, some 100,000 people signed a petition calling on the Government to scrap the ‘go digital’ plans, after fears that the switch would be ‘burdensome’ for struggling business owners.
Under new rules, millions will now have to file up to four tax returns per year, as opposed to just one. The new telephone submission system is likely to involve the person registering their account, and then answering a series of automated questions about their business – such as details about their revenues and costs – followed by a short conversation with a member of HMRC staff over the phone.
The exact information users will be required to hand over has yet to be decided, but the service should offer an efficient and hassle-free alternative to postal and online submission – assuming HMRC can find adequate manpower for their telephone offices.