Digital tax accounts a positive step
November 25, 2015
By Kevin Nicholson and Iain McCluskey
Moving the world of tax compliance into the digital age is a really positive step. Helping people pay tax quickly and more easily will save time and money for taxpayers and HMRC.
The announcement that the platform will be used to accelerate capital gains tax payments on second homes suggests this is ultimately about collecting revenue faster. But if digital tax accounts ultimately make it easier to pay tax, this should also reduce penalties for taxpayers.
It will be important to make sure that sufficient HMRC capacity in the 'old way of doing things' is maintained for those taxpayers who, for numerous reasons, are not comfortable or are unable to use a digital system.
The tax system needs to be simplified and this is a helpful step forward.