Personal Tax Account
New Personal Tax Accounts will make UK tax system simpler but will require constant feeding of information to HMRC, satisfying variable deadlines, regular budgeting and payments to HMRC. We at SouthWest Accountancy will take over all this for you to leave you with the sole task to run your business stress free.
Personal Tax Account (PTA) is aimed at the five million small and medium- sized businesses in the UK. All personal taxpayers will have personal accounts by April 2016, as will all of the country's five million small businesses. It gives you an easy way to find advice and information, and lets you see tax transactions across the range of business taxes including Self Assessment (SA), Corporation Tax (CT), VAT and PAYE for employers.
This is very similar to RTI used for payroll and will require constant
feeding of information to the HMRC. You’ll be able to inform when
your circumstances change, so that you have the reassurance of
knowing that your taxes and tax credits are always up to date.
At SouthWest Accountancy we will take over the whole process for
you and make sure everything in your Personal Tax Account is
upto date so that you can carry on trying to run a successful
business.
For many people, it will eventually remove the need to complete a tax return at the end of the year. You’ll receive secure messages to remind you when it’s time to do something, so that you need never forget a deadline. You’ll be able to see immediately what any changes in your circumstances mean for the tax you need to pay, or the money you can receive. And you will be able to manage payments quickly and easily online. The new accounts will allow people to see their tax details and make payments at any time of the day or year.
We at SouthWest Accountancy will ensure that whenever there is deadline and something requested by the HMRC throughout the year everything is sumbitted in a correct and timely manner and whenever there is need to make a payment or request a repayment we will initiate that on your behalf. As everything will be done on real time basis and as we know individual/business are in the midset of looking at profit/loss, income/tax on yearly basis. We will provide you with your quarterly projected year end profit/loss, tax liability/repayments taking into account the allowances you are entitled to. It will give you a clear picture of what your financial position will be at the end of the year.
Managing your account in real time also pose the issue of how and when you should extract profit from your business.
At SouthWest Accountancy we will apply tax efficient strategies using our knowledge of tax legislation so that you can take money out of the business while paying minimum amount of tax
One advantage of the new digital tax accounts is that they should stop the build up of tax due, or refunds owed, at the end of each financial year, with no more surprises or shocks for tax payers.The HMRC's aim is that by 2020 the new digital accounts will encompass all taxpayers, individual or corporate. This will mean that you may have to make monthly direct debit payment to the HMRC rather than saving money for the annual tax bill as in the past. We At SouthWest Accountancy we will calculate what would be the best amount to set up the direct debit for based on our calculation of your projected income and your financial situation so that your entire tax liability is spread even throughout the year saving you a stress to pay large tax bill at the end of the year.
Businesses including the self-employed and landlords will, from April 2018, have to update HMRC every quarter where this activity is their main source of income.
That obligation to report quarterly will also apply where the money is a secondary source of income worth more than £10,000, and the main income is from employment or from a pension. Behind the scenes, HMRC plans to bring all the information it holds on a taxpayer into one system, including data from employers, banks, building societies and other government departments.
This will eventually lead to the demise of the annual tax return for most taxpayers and so the current system of self-assessment, introduced in 1996 and now largely online, will wither away. Self-assessment for individuals and small businesses (including companies) will work through digital tax accounts, so there will be no need for them to send in annual tax returns.
Under new Personal Tax Accounts (PTA) Obligations on customers, such as to inform HMRC of taxable income or to provide information relating to that income, will not change where HMRC does not have the data from another source. Taxpayers will still have to confirm their information is correct and make sure the right tax is paid.
We at SouthWest Accountancy will ensure that all this financial information is up to date,correct and submitted in a timely fashion so that you may not face any penalties, tax investigation or negative tax implications. Whether it includes your cash transactions, capital accquisitions, allowable deductions or a change in circumstances which may affect your tax position.
