Pay as you go tax

 Concern over HMRC pay-as-you-go tax plan

Business groups have raised concerns that HMRC’s new voluntary pay-as-you-go digital tax system, designed as a budgeting tool to help businesses and the self-employed, could lead to incorrect tax payments. Experts have voiced doubts over the ability of HMRC"s administrative and IT systems to handle problems caused by people attempting to do their own taxes digitally. IPSE’s Andy Chamberlain said there “is generally no reason to pay tax in advance,” and that the system is more likely to benefit HMRC than self-employed workers. However, in a statement HMRC mentioned that its research and earlier informal consultation exercise states that “businesses have a real appetite for more flexible payment options”.

Source:   Financial Times (01/10/2016)   FabNewz (30/09/2016)