Changes are coming to Tax Reporting – Are You Ready?01 Sep, 20232 minutes
Draft legislation released for consultation on 18 July 2023 indicates that businesses and in...
Draft legislation released for consultation on 18 July 2023 indicates that businesses and individual taxpayers will be required to provide more information to HMRC in the next few years.
Here’s what’s on the horizon:
Starting in 2025/26, Real-time information (RTI) PAYE reporting will require employers to provide in-depth details about employee hours worked. The specific information to be reported will be laid out in separate regulations, so stay tuned and we will provide further updates on the proposed changes.
Shareholders in owner-managed businesses, your reporting is changing too. From 2025/26, you'll need to provide additional information through your self-assessment tax returns. You will be required to disclose the dividends received from your own companies separately from other sources of dividend income and reveal the percentage shareholding held in your own companies. Failure to report this information will result in a £60 fixed penalty.
Self-employed individuals won't be left behind. From 2025/26, you will need to report the start and end dates of your businesses through your self-assessment returns. The box to collect this information is already included on the self-employment and partnership pages, however, for now, it is not mandatory. Similarly, to the above point, failure to report this will result in a £60 fixed penalty.
The clock is ticking, and the tax landscape is evolving. Stay informed, be proactive, and navigate the future of tax with confidence.
Our tax experts are available to assist you with your tax planning needs, get in touch today at firstname.lastname@example.org.