Autumn Statement 2015: Tax changes in the pipeline

Our tax affairs will be organised digitally in the future, Chancellor George Osborne says, but it does not mean they are getting any simpler.

A series of tax changes were hidden behind the headlines of his Autumn Statement.

Some affect the self-employed and small companies, others impact low-income individuals, the retired and the wealthy. Many will now go out for discussion, but the outlines are clear.

Your own tax account

HM Revenue and Customs (HMRC) are to give most taxpayers a digital tax account. You will be able to see your tax position online and access the account using free apps and software.

But you will also have to keep the account up to date. The self-employed and landlords must input income and expenses every quarter, instead of waiting until after the end of the tax year to tell HMRC about profits. We do not yet know if this will also mean tax needs to be paid sooner.

Employees and pensioners will not be part of this new digital world, unless you have another source of income which pays you over £10,000 a year.

Automatic tax bills

HMRC will be able to send you a tax bill on the basis of the information they already hold, replacing self-assessment with HMRC assessment.

This new approach will be used where HMRC believe you have "simple" tax affairs.

If you receive an automatic tax bill, you should check it straight away. If you do not challenge the bill within a limited period, it may become final and HMRC will then collect the tax.

https://www.bbc.co.uk/news/business-34927158