The Good News and the Bad Digital News
The tax return is on its way out. Hurrah!
We are now going to have to make at least 4 accounts / tax returns a year instead. Booo!!
This is on its way. HMRC have just published a couple of papers on why they’re doing it (to save costs).
They reveal that they are going to start this in 2018 and it will be compulsory for all from 2020.
They confirm that you will need some form of accounts software to comply, some of which will be made freely available by the taxman, as he currently does for PAYE.
This does mean that unless you are able to retire before 2020, you are going to have to sort out some computerised and online bookkeeping system that could signal a big change to the way you keep your accounting records. You have a few years to prepare, and it may be too soon to do anything drastic before we see what tools HMRC are going to make available. It is coming though. Be prepared.