HMRC has described its Making tax digital vision as "transformative" as it turns to technology to help cut costs and improve user experiences. More than two million small businesses are already using digital tax accounts and by 2016 every small company will have access to one by 2016.
As announced in the Autumn Statement, by 2020 most small business owners and the self-employed will be required to update HMRC on their tax affairs at least quarterly via their digital tax account. The changes will be introduced for some firms from April 2018.
To comply businesses will need to use software or apps. Free products will be provided but several established commercial solutions are available.
HMRC said it will consult "widely" on the measures next year.
Making Tax Digital
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