Budget comment: Prydis comments on the abolition of the Annual Self-Assessment Tax Return

18/03/2015

Prydis

Commenting on the abolition of the Annual Self-Assessment Tax Return, James Priday, Director of Prydis, said:

“The chancellor has announced that the Annual Self-Assessment Tax Return is to be abolished and replaced with “real-time” online accounts by 2020. The use of the term “real-time” suggests a similar replacement to that of the annual submission of payroll information, which is now submitted by employers on a monthly basis. Taxpayers will set up a digital tax account into which they can submit tax information on a regular basis, linking into their accounting software and bank accounts. This suggests tax on salary and bank interest will automatically be uploaded, anddetails of any other income will be uploaded by the individuals so that any tax due can be calculated throughout the year. It has been described as “a revolutionary simplification of tax collection” but we have yet to see how much will be required from the taxpayer, who currently only needs to collate their information and make one submission each year. The question is: how much simpler and quicker will the new system be?”