Millions of small business owners, self-employed workers and landlords are to be forced to file tax returns four times a year.
The Government expects most self-employed workers to be filing quarterly and online by 2020. Details of which will be released during the next year.
Currently, self-employed earners need to file by October 31 if submitting a paper return, or online by January 31 and all taxes must be paid by January 31. However, with these changes taxpayers are expected to submit a return every three months - this can be a huge burden on small businesses as they would need to make sure their records are kept up to date throughout the year, and, although initially workers are not expected to pay tax four times per year, we believe eventually that is HMRC's goal.
Other than the burdens already mentioned, plus the possible higher accountancy expenses for small businesses and self-employed, the prospect of late penalty charges up to four times per year is another worry for workers. Currently fines start from £100 for a day late in filing, this combined with HMRC's poor customer service record could mean a recipe for disaster for tax payers.
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