HMRC have announced that they are set to change the way in which they operate, currently a large percentage of the government organisations work is done via traditional paper methods however, changes are being made to fit our technologically developed society.
Each taxpayer will be allocated personal login details, their area will be personalised to their own needs and will hold details of previous and future payments. In 2013 73% of adults accessed the internet everyday, indicating that online payment is a much more efficient method of payment for consumers.
“Effective use of data will not only ensure easier transactions by compliant taxpayers, it will also improve voluntary compliance, such as automating and checking calculations to prevent inadvertent error” – Ian Barlow the non-executive director of HMRC stated in his article for City AM. The new methods will enable the body to focus their efforts on finding taxpayers who are trying to ‘cheat the system’.
As Mr Barlow stated it is likely that this movement will improve the organisation of the whole government body, computerised calculation of tax payments leaves little room for error. It also allows time for the employees to look at different matters such as customer complaints, making HMRC more precise, a benefit to all taxpayers.
Some users have expressed concerns about the reduction in communication between the organisation and its users however there will still be a ‘multi-channel approach’, a telephone service will be available for those who do not have internet access or do not wish to interact online.
There is some way to come before these changes are made official however each taxpayer must be aware of how the development will change payment for them.
MCC Accountants offer business tax and management accounting solutions for a range of companies, specialising in small businesses and the self-employed. If you are in need of advice for your business please contact us on 0161 707 1500.