From about 2020, there will be no more Tax Returns. That’s the plan. It sounds like a good idea. HMRC can get most of the information about your income from other sources. They can find out what you earn from your employer. They can find out what dividends you get from public companies. They know what interest you get from the banks. They won’t need you to tell them what you earn and they will process all the information they get correctly, won’t they?
Well, the problem is if you have your own company or if you are self employed, they are going to need you to report your income every three months – not once a year! We don’t know as yet how accurately these figures will have to be. No doubt there will be penalties if the quarterly figures turn out to be wildly out. Whatever the final proposals are like, it will mean more work for you and us.