HMRC’s Digital Services are to be transformed. . .

 HMRC’s Digital Services are to be transformed by £200 million of Government investment, as taxpayers get direct access to their tax affairs

 

By April 2015, up to two million people will be able to take control of their tax affairs through their own online accounts, HMRC announced today.

Nearly five million small businesses will also be able to interact with HMRC digitally, gaining much greater control over their tax affairs. This will mean less red tape, and more practical and useful support and advice delivered online.

Digital transformation will enable people to spend more time developing their businesses and less on paperwork and bureaucracy. It also means a fairer, more level playing field, by helping HMRC to identify the minority who seek to get around the rules.

The new system will remove unfair competitive advantage from those who try to cheat the system.

In January 2013, 82.5% of self assessment taxpayers chose to file using HMRC’s digital Self Assessment online service.Digital transformation will reduce HMRC’s costs by £51 million in 2015-16.

By 2015-16, up to two million individual customers will be able to carry out transactions online, such as:

  • self-serving their repayments
  • viewing their tax codes and how they are made up
  • updating their personal details online
  • handling end of year reconciliation online
  • reporting additional sources of income, such as interest, rental and dividend income
  • receiving targeted online support when approaching retirement and
  • receiving correspondence for these services via their online account

By the end of 2015-16 SMEs (small and medium enterprises) and their agents will be able to:

  • access nearly everything they need through a single personalised homepage
  • get direct access to all the online transactions relevant to them
  • view a personalised tax calendar with digital alerts
  • complete more transactions online (for example, telling HMRC that they’ve ceased trading)
  • get answers to their questions through tailored online tools, thereby reducing post and phone volumes
  • get relevant cross-Government information where appropriate and interact with HMRC digitally (in most cases)