December 15 ,2015 | by Hari Sri

HMRC launches personal tax accounts

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HM Revenue & Customs (HMRC) has officially launched the new system of personal tax accounts that will lead to the end for annual tax returns.

The new accounts will offer greater flexibility to taxpayers and be similar to online banking, says the authority.

24/7 service

The new set-up will give people the option to check their tax details and make the necessary payments at any time of day or year, whenever it best suits them.

This is major move away from the current system of filing annual returns.

People currently in the self-assessment system will be the first to experience the roll out of the new service, and all personal taxpayers will have personal accounts by April of next year.

Five million small businesses in the UK will also fall under the new regime and two million are already using it.

Groundbreaking development

Director general of personal tax at HMRC, Ruth Owen, said: "The launch of personal tax accounts is a groundbreaking development for HMRC and our customers."

"Remember when you started banking online? Well, this is the equivalent shift in service for the majority of our customers wanting to do business with us online," she added.

Quarterly updates

However, businesses, the self-employed and landlords will have to give HMRC quarterly updates starting from April 2018.

HMRC also plans to centralise all the information it holds on each taxpayer by including data from employers, banks, building societies and other government departments into one single process. 

Hari is the LSBF Blog's News Editor. He manages the editorial content on the blog and writes about current affairs, SME, entrepreneurship, energy, education and emerging market news.

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