Online tax return judgement favours small business owners

A judge has decreed that it is illegal for HMRC to demand that all tax returns are conducted online.

The decision will benefit those without computer skills or access, whether because of age, disability or remote working.

In the specific case which brought about this ruling, three small business owners – two with disabilities and one who lived in a remote area without broadband access – had previously filed paper-based tax returns promptly and accurately, but were unable to comply with the change in rules the government imposed. Paper-based filing, or other alternatives, must now be offered and accepted by HMRC as a legitimate form of tax return.

In more tax related news: there will be a period of grace for healthcare professionals to settle their unpaid taxes. Those with unpaid taxes looming over them now have until April 6th 2014 to pay, or face the risk of heavy fines.

The Health and Wellbeing Tax Plan will enable people to disclose any undeclared income and settle their unpaid tax, including any penalties and interest due. This campaign is aimed at physiotherapists, occupational therapists, chiropractors, osteopaths, dieticians, nutritional therapists, psychologists, and several other areas of care.

Health professionals have until December 31st 2013 to register with the Health and Wellbeing Tax Plan, after which HMRC will look closely at the tax affairs of those who haven’t. Those who do register will then have until April 6th 2014 to disclose and pay their tax, while those who don’t will be liable for bigger fines.

For more information on the scheme, including who is eligible, visit HMRC’s website.

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