The Force Awakens?
17th December 2015
A long time ago in a galaxy far, far away....
Someone at HMRC was dreaming up a digital tax collection scheme so idealistic and futuristic C3PO and R2D2 would struggle getting their heads round how this one would work in practice. Now here it is already operating in our midst, inflicted on a few carefully selected individuals and expected to be widely adopted by 2020.
The new system will replace annual tax returns and will be adopted by millions of individuals and businesses. Around £1.3bn is being ploughed into the system. Of course this will all be offset in the long run by a smooth running and incredibly efficient digital system and the closure of 137 local tax offices by 2027.
Hmmm........ Let’s just take a step back and think about this pipe dream and HMRC’s level of customer service to date, a service so bad that parliament now considers it to have "an adverse impact on the collection of tax revenues." Another issue is clearly going to be internet reliability and getting the nation's 30 million taxpayers connected to the internet when many areas of the UK still struggle to get a phone signal!
It will all be fine I hear you cry. The Universal Service Obligation will see everyone in the country connected to the internet before long. People won’t need accountants and will be able to do everything themselves online. No more annual tax returns!
Unfortunately it seems now people will have to deliver a reasonably robust set of accounts and tax returns on a quarterly basis rather than annually and keep Big Brother updated every few months. More administration.
To find out how we intend to help our clients through this transition do get in touch. But don’t panic. If this is in play and running smoothly by 2020 we’ll eat our calculators.
We sense a disturbance in the force we have not felt for a long time.............