Sole traders, landlords and unincorporated businesses will be able to submit \u2018voluntary\u2019 tax payments towards unexpected tax liabilities, under new proposals from HM Revenue & Customs (HMRC).<\/p>\n
The news comes alongside the much anticipated publication of six consultation documents into HMRC\u2019s Making Tax Digital (MTD) campaign, which the tax authority hopes will make all tax \u201c100 per cent digital by 2020\u201d.<\/p>\n
PAYG \u2013 HMRC\u2019s proposed pay-as-you-go system \u2013 is one of many unanticipated changes to MTD outlined in the tax authority\u2019s latest consultations, which were published yesterday.<\/p>\n
The PAYG system will allow taxpayers to take full control over how often they wish to pay, and how regularly they wish to pay \u2013 although businesses with an annual income of \u00a310,000 or more will also find themselves under a new obligation to report accounts information to HMRC \u201cat least quarterly,\u201d according to consultations.<\/p>\n
HMRC has said that their optional voluntary system will apply to the likes of Capital Gains Tax (CGT), income tax and National Insurance (NI) contributions from 1 April 2018 \u2013 and to VAT from April 2019.<\/p>\n
By 2020, HMRC hopes PAYG will be also open to incorporated businesses in respect of their corporation tax affairs.<\/p>\n
Proposals under MTD are complex and confusing, and taxpayers and businesses alike are advised to seek advice, to determine exactly how HMRC\u2019s tax overhaul will affect them personally.<\/p>\n
The Association of Taxation Technicians (ATT) recently branded MTD \u201cthe biggest change to the way taxpayers will engage with HMRC since the introduction of PAYE in 1945\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
Sole traders, landlords and unincorporated businesses will be able to submit \u2018voluntary\u2019 tax payments towards unexpected tax liabilities, under new proposals from HM Revenue & Customs (HMRC).<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1451"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1451"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1451\/revisions"}],"predecessor-version":[{"id":1452,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1451\/revisions\/1452"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}