New rules for Filing Tax Returns in the UK – TaxBack

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New rules for Filing Tax Returns in the UK

The Digitalisation of your UK Tax Return!

Four years ago in 2015, the government disclosed a plan to place your UK tax return on a digital platform, in April 2019 the initiative took place.

This change, when fully effective could alter the way you file your tax returns in the UK; although a recent ‘House of Lords Economic Affairs’ report claims the government has not fully analysed the effect of the new rules on small businesses. Nevertheless, filing your tax returns via a qualified tax accountant attached to professional agencies such as Tax back in the UK will ensure you get the job done accurately and to your best benefit.

How to File your Tax Return in the UK

First, let’s take a look at the existing rules for filing a UK tax return. Everyone knows HMRC prefers to collect tax straight from the source which is the PAYE system (pay as you go).

Conditions under Which you Need to File a Tax Return

  • Self-employed and earning over £1,000 annually
  • Employed and needing to claim ‘tax back’ on expenses up to or exceeding £2,500
  • Employed and earning an extra income which does not get taxed at the source; commissions, interest on savings or dividends or investments and rent from property
  • A receiver of child benefits while earning over £50,000 annually

Under the existing law, your 2019/20 tax return should be filed by January 2021.

When will the New UK Tax Return Filing Laws be Established?

Making tax digital came into effect from April 1st 2019 with digitalisation being applied to VAT returns for now. Hence the new rule applies if your business turnover is over £85,000 annually in other words if your VAT registered

Where the Digital Tax System is not Effective as of April 2019?

  • Not all businesses raking in a turnover of £85,000 yearly fall under the digital tax system
  • Some must start on the digitised tax system by October 2019
  • Not VAT registered and self-employed you need to get on the digital tax assessment system by 2020

How Do You Make the Transition to Digital Tax in the UK – Do you need Help?

Yes! A professional tax accountant will help make the transition easy; you need to start with;

  • keeping digital records
  • Investing in accounting software approved by HMRC

Although the system sounds complicated, switching to a digital tax return in the UK is easy if you get help from the right source. We as a leading tax refund company in the UK will help you get started and ensure you stay on track, minus the confusion. Contact us early and avoid last minute delays, penalties and worry!

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