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Tax Goes Digital
HM Revenue and Customs have introduced plans for all businesses, self-employed people and landlords to use a new digital service to submit their tax returns, starting in 2018.
Businesses will be required to start using the new service from:-
- April 2018 if they have profits chargeable to Income Tax and pay Class 4 National Insurance contributions (NICs)
- April 2019 if they are registered for and pay VAT
- April 2020 if they pay Corporation Tax (CT)
Business who can’t get online for reasons such as disability, geographical, or other reasons will be exempted from the obligations to use this service. These exemptions ensure that the proposed changes do not have a disproportionate impact on those people with protected characteristics under the Equalities Act 2010.
It is expected that HMRC’s plans will be introduced into legislation after the 2017 General Election, after which it will become a legal requirement for business to use this system, except where they are exempt for the reasons given above. Any legislation will also include provisions for greater compliance powers to allow HMRC to investigate a business’s tax position where it does not comply with the digital requirements.
Parks should familiarise themselves with these changes and should be aware of when the changes will apply to them. Parks will also need to explain the system to any of their staff who deal with financial transactions. Once implemented, parks will need to keeps records of their income and expenditure digitally, and will need to send quarterly updates to HMRC through their software (or app).
If you have any queries or are interested in subscribing to our Parklaw service, contact the Parks Team by telephone: 01392 207020 or email email@example.com.