The government is currently consulting on a new way of paying tax for businesses.  They are planning to move away from paper services towards digital services, which may make sense for many, given the way things are currently moving.  However, what may come as a shock is that businesses may be required to pay their taxes either monthly or quarterly rather than once or twice a year.

The government does not want these tax payments to be based on estimates either!  They want them to reflect the actual profits for that month or quarter or whatever period it may be.  This means that businesses will need to produce some kind of accounts to calculate each tax payment.  The suggestion, by the government, is that businesses would submit these figures using an online system, like the existing RTI system for payroll.

The government wants to introduce this by 2020 at the latest.

So if you are one of those who really detests pulling together year end accounts once every 12 months to hand to your accountant.  This will soon become a much more frequent process.

Northumberland Accountants & Tax Advisers can help assist you to ensure that this process will not be as burdensome as it may first appear.  Just contact us to see how we can help.