Tax Simplification - Digitial Tax Accounts


During the Autumn budget, it was announced that a simpler way of paying tax will start for 16/17, but also that from April 18, people will need to keep digital tax records & updated HMRC at least quarterly.

I assume that Quick File will be able to offer this reporting since our records are already digital.

Hi @acutedesign

The records that QuickFile keeps should be adequate - the receipt hub files certainly are providing the documents are complete, accurate and legible.

I’m not sure if the plans for how the reporting will work have even been decided (i.e. how software should report these figures). However, I will check this with @Glenn and come back to you.

We don’t have the full details on the specification yet as the API has not been publicly released.

When the information filters through and the schemas are publicly available then we would certainly pursue this further.

Fantastic, thanks for your replies!

First i would like to distinguish between book keeping and accounting.

For Companies:
Book keeping is recording of day to day business transactions, i.e. This is what QF helps us with.
Accounting, is drawing up the profit & loss statement, Balance sheets i.e. the financial statements in statutory format for submission to Co House and HMRC. With these financial statements we also submit Company tax return to HMRC.

For Self employed/sole traders:
Booking is as above.
There is accounting i.e. drawing up financial statements, but these don’t need to be submitted anywhere.
However, data almost similar to these financial statements is submitted via personal self assessment tax return to HMRC.

I would be very cautious of sharing book keeping data directly with HMRC.
We are not sure if this is how HMRC will want it.

There are some (very few i think) that allow submission i.e. online filling (i think at the moment this is limited to self assessment tax return) directly from the book keeping software.
Usually an accountant has their own software that does the accounting bit for you.

So the question is, will HMRC want the book keeping data or the accounting data.

I would be cautious of sharing book keeping data, as its day to day records of the business, which is subject to changes when necessary at the end of the year.

Maybe HMRC would like to have access to business bank account data only - who knows!
HMRC will be getting data on offshore bank accounts from next year, so maybe this is their way to have access to UK bank data…

As I understand the proposals, certain qualifying businesses will need to supply tax based computations on a more regular basis (i.e. quarterly) replacing the annual self assessment regime.

The new API will work on a PULL basis rather than push, i.e. we will be importing tax payer information into QuickFile, rather than sending account data to HMRC.

any update on this?

Can you clarify how you will exactly be integrating with Personal Tax Account and Verify?

shopping for accountancy services in the new year (professional and system) and this topic looks like it will be an influencing factor.

ps: good thing I work in IT and am used to the pace of changes currently afoot. Otherwise all these complicated systems trying to talk to each other could be quite overwhelming

There is no official API for interfacing with the Personal Tax Account at this time. HMRC have recently staged some usability testing sessions and we should have some draft schemas published later this year.

I will update this thread with any further news as we receive it.