Get up to speed with the digital future of tax, say experts
Individuals who believe they may have a capital gains tax liability can now pay up front as soon as it has been incurred.
HMRC launched an online service for capital gains tax (CGT) some time ago as part of its Making Tax Digital (MTD) initiative which is being rolled out over the next couple of years.
Under MTD, the aim is to ensure individuals and businesses have a digital tax account with payments being made in ‘real time’ rather than having to wait until the end of the year, removing the bureaucratic burden of the tax return for HMRC and simplifying the process for taxpayers.
Experts at Whitley Stimpson, one of the largest independent accountancy practices in the area, with offices in Banbury, Bicester, High Wycombe and Witney, say it is important that everyone is aware of MTD as it marks a major step change in how tax is reported.
Owen Kyffin, director and tax expert at the firm, said: “Real time reporting of CGT is just the tip of the iceberg as HMRC moves to a completely online system.
“While it is good to know that a one-off gain such as selling a property can be paid immediately without having to go through the self-assessment system, individuals should be aware they will still need to report that gain if they are filing a tax return.
“We welcome the MTD initiative but it is a major change and it is important that everyone is fully aware of the implications, for example with digital VAT reporting on the horizon. Confusion is inevitable but we are here to help both now and in the future as this system evolves.”
Further details of the changes and their implications are available from Owen Kyffin owenk@whitleystimpson.co.uk or 01295 270200.
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