End of year tax returns scrapped in favour of real-time accounts

Chancellor George Osborne announced in his Budget speech today that the government will scrap annual tax returns and replace them with a 'real-time' online accounts system that calculates tax throughout the year.

The scrapping of end of year tax returns will do away with the the annual rush of individuals and businesses to file their returns before the end of January, and will include the opportunity to pay tax at any point in the year. There will also be an option to pay the tax owed in a single lump sum or in instalments.

Information from employers, pension providers, banks and elsewhere will be used to calculate tax in 'real-time', and you will be able to access your digital tax account online. It is proposed that the switch will begin in 2016 with 5 million small businesses and 10 million individuals, and will eventually be completed for the whole of Northern Ireland and the rest of the UK by 2020.

If you require advice or information in respect of income tax, capital gains tax, inheritance tax, or general tax planning, contact one of the tax specialists at Wilson Nesbitt in Northern Ireland by calling 0800 840 9288.

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