Ian McMonagle
‘Adapting to change – Digital Tax Accounts’
The proposed introduction of Digital Tax Accounts will be the biggest transformation in the history of our tax system. Are you ready to embrace the changes?
Nikki Williams
'Change is inevitable – Progress is optional'
How to objectively assess your business and know how to move forward.
Stuart Stott
'How has Google changed the way we search'
Changes in search patterns
The power of mobile Search
The impact of these changes to SME's in 2016
10. The most significant
single change affecting
individuals and small
businesses in the
history of our income
tax system
11.
12.
13. “During this Parliament, HMRC will make
fundamental changes to the way the tax
system works — transforming tax
administration so it is more effective,
more efficient, and easier for taxpayers.”
David Gauke MP
Financial Secretary to the Treasury
14.
15. “Much more than simply
adding digital tools to the
current system; it is about
transforming the UK tax
system”
- David Gauke MP
Financial Secretary to the
Treasury
16. • 50 million individuals will have their
own Digital Tax Accounts
• Pre-populated by HMRC
• Everything in the one place,
including Child Benefits, State
Pension forecasts, tax paid
• All taxation will switch to online
communication
17.
18. • 4 quarterly “updates” will be required each
year
• From April 2018, all small, non-VAT
registered businesses and landlords must
comply with the new digital reporting rules
• From 2020 this will apply to all businesses,
including companies
• Mandatory digital record-keeping
19. • Quarterly returns(?) - similar to VAT
or RTI/PAYE systems
• Online billing, aligning payments
with profits made (Pay as you go)
• Tax potentially payable monthly,
quarterly or by Direct Debit
• ‘Real-time’
• HMRC access to bank accounts?
24. Case study: Director & Shareholder
Salary
Company dividends
Bank interest
Receives Child Benefits
Pays personal pension contributions
25. Case study: Landlord
2 Furnished properties
£500 per month gross rents x 2
Buy-to let loans
Joint title
26. Bookkeeping survey of 500 businesses
across the UK:
• 25% use software currently
• 25% use a paper-only system
• The rest employ a mixture of both or
use packages such as Excel
27. • ‘Quarterly tax reporting a threat to small
businesses’
• ‘Small firms will struggle with new quarterly
tax returns’
• ‘This should be a voluntary scheme for small
businesses’
• ‘HMRC should undertake an impact
assessment and consultation exercise’
28. ‘Should be a matter of choice and should not be
made mandatory’
‘Businesses should be able to move to digital over
time’
29. Your call to action:
• Ditch the bad habits
• Adopt good practices
• Bookkeeping
• Embrace software
• Change now