Making Tax Digital

The biggest shake-up of the tax system for 20 years is underway as online personal tax accounts replace the annual tax return – and PEM has launched a secure online portal and a free mobile app to help you make the digital transition.

The government announced the plan in March 2015, which will bring together all of the taxpayer’s details in one place and allow you to update and review your tax affairs in real time. All individuals are able to access their own personal tax account already, although limited information is currently shown in the account.

Taxpayers will be able to let their agents manage their personal tax account on their behalf if they wish.

What do we know so far?

HMRC recently announced details of how the new digital system will look. The changes are wide ranging with the potential to cause headaches for landlords and the self-employed. Announced so far:

From April 2018 HMRC will require the self-employed and landlords with receipts of over £10k per year to update their personal tax account with details of their income on a quarterly basis.

Businesses will be required to maintain their records digitally, using either software or apps to keep details of receipts and expenses, see below for details of the PEM receipt manager.

HMRC will update your account with details of income it already holds. Employment income is uploaded to the account already and details of interest paid by banks and building societies will be uploaded from early 2018.

By 2020 the transition to digital taxation is scheduled to be complete, and the personal tax account will provide a single place for taxpayers to manage all their tax liabilities (Income Tax, National Insurance and VAT).

PEM will update you as and when further details are announced.

Get digital ready

In anticipation of the transition to digital PEM is pleased to offer its new secure online portal, enabling you to send and receive information directly to your PEM contact.

You can use the portal to upload the information for your tax return, and once your tax return has been prepared you will be able to electronically approve the document ready to submit to HMRC.

Previous years’ tax returns can also be uploaded to the portal so that you are able to access your tax information 24/7.

Because the portal offers so many advantages over email, we would encourage as many clients as possible to use the system. Further details can be found at www.pem.co.uk/services/portal.

If you are interested in using the portal please ask your usual PEM contact to set you up with a portal account.

Introducing the PEM app

PEM is also pleased to announce the release of its new, free to download, mobile app.

The app gives you instant access to the latest business and tax news as well as useful tools such as receipt manager to keep track of your income and expenses.

You will also be able to access the PEM portal via the app.

To download, please go to the app store on your Apple device or Google Play on your Android device and search for ‘PEM Accountants’.

To find out more about the services that we offer, visit our Private Clients page. Alternatively, if you would like further information on the issues raised above, please contact us using our contact page.

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