Digital Tax Accounts Consultation Delay

Digital Tax Accounts Consultation Delay.

HMRC announced last week that it will be delaying its consultation for digital tax accounts until after the EU referendum next week.

What is a Digital Tax Account?

Your personal tax account will be linked to your bank accounts and earnings information and reported in real time. Potentially pension accounts, investments mortgages etc could also be linked.  Likewise, small businesses will be invited to also have digital tax accounts linking income, expenses, VAT, payroll etc.

What will digital tax accounts mean for you?

It means that all your update financial information will be reported to HMRC in real time.  This means that you are likely to paying tax in real time rather than in the January after the end of the tax year, or for small businesses, paying instantly rather than 9 months after company year end. 

Comment

This is about on time revenue and tax collection rather than making it easier for the public.  Big brother will truly be watching you soon.