At the March 2015 Budget, the government set out the vision for a transformed tax system and the end of the tax return.
Making Tax Digital sets out how this bold vision for the future of the tax system will be achieved by 2020.
By 2020, HMRC will have moved to a fully digital tax system where:
- bureaucratic form-filling is eradicated — taxpayers should never have to tell HMRC information it already knows;
- unnecessary time delays are eliminated — the tax system operates much more closely to ‘real time’, keeping everyone up to date and removing the risk of missed deadlines, unnecessary penalties, debts arising and errors in the system being carried forward from one year to the next; and
- taxpayers have access to digital accounts — with the information HMRC needs automatically uploaded, bringing an end to the tax return.
HRMC claims these reforms will transform the experience of millions of taxpayers. More detail about how these reforms will be implemented, and some aspects of their design, will be the subject of further consultation. These consultations will give stakeholders and customers the opportunity to contribute to this work and shape tax administration for a generation to come.