HMRC Considers Dropping Paper Tax Returns

February 2, 2017 Taxation in UK

HMRC UKLONDON – Innovative new technology could spell the end of paper tax returns in the UK.

The HM Revenue and Customs has released a new version of its Making Tax Digital policy document, suggesting that in the near future the standard tax return faced each year by businesses and individual will be a thing of the past.

It was proposed that the annual paper tax return be preplaced with an online system to be updated by the individual or business-owner once every quarter.

The improved system should reduce and spread out the task of ensuring compliance with tax requirements over the course of the year, reducing the burden of the end-of-year crunch.

Alongside with filling the taxes online, taxpayers will also be able to pay their owing taxes through the same online system.

As part of the digital roll-out, the government will provide a free digital software suite which will let taxpayers complete their taxes, however, businesses and individuals who are unable to migrate to the digital system may be granted an exemption.

The new system will be piloted by selected businesses prior to a nation-wide launch.