SMEs to be granted ability to file taxes online
The Chancellor George Osborne has announced in today’s Budget he plans to scrap the annual tax return, replacing it with a single ‘digital’ tax account, which he says will help 12m Britons, including millions of small businesses.
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Businesses and individuals will be able to link their own accounting software and their bank account to the digital tax account, removing the need to submit an end-of-year return and paying an annual tax bill in one go.
People will be able to pay their tax at any point throughout the year. They will also be able to spread the cost by paying in instalments.
Describing the move as a "revolutionary simplication of the tax collection scheme", Osborne added:
"Twelve million people and small businesses are forced to complete a self-assessment tax return every year. It is complex, costly and time-consuming.
"We will abolish the annual tax return altogether. Millions of individuals will have the information the revenue needs automatically uploaded into online accounts."
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