Starting as soon as 2018, HMRC will require all UK businesses to start quarterly filing online and this is anticipated to start as early as April 2018.
It’s a big change to a digital tax system – using an online app tax will be filed quarterly. Making tax digital is part of the government’s plans to make it easier for people and businesses to stay on top of their accounting. In essence it means the end of annual tax returns for millions across the UK.
The major changes to be introduced are:
- Bank transactions and other financial information will flow automatically into people’s digital tax account.
- Submissions will need to be made at least once per quarter.
- Submissions will need to be filed using some form of software (you’ll need to use an app that is integrated to your digital tax account).
There will be an app set up by HMRC, or your you can use an independent accounting software package.
Desktop accounting software historically hasn’t the capabilities to submit tax online so, all companies will have to move to either the HMRC app or an online accounting system in order to file online.
We are currently working on this process and will update you on our progress.