The UK government recently announced a series of changes aiming to simplify taxes, with 26 measures intended to strengthen the system’s integrity.

On top of this, 11 further measures are being introduced to help modernise the system and reduce bureaucracy.

Measures Included

Though the full range of these changes cannot be distilled into a single article – see the government website for the full list – the most important changes affect small businesses and employers.

HMRC are modernising their systems, which means these employers and small businesses won’t be nearly as burdened by their administrative procedures.

The hope is that simplifying taxes will also trigger simplification in HMRC’s communication and guidance.

Capital Goods Scheme

Computers are set to be removed as assets covered by the scheme, as these often required VA adjustments. By removing them, these calculations become unneeded.

The value of land, buildings and even work in civil engineering will increase from £200,000 to £600,000, both excluding VAT. Only projects that surpass this threshold would need to adjust VAT.

Income Tax Self-Assessment

Whilst anyone earning trading income over £1,000 previously had to file a self-assessment return for their taxes, the new measures will help align the reporting with new thresholds for other taxable income, including property.

This change is hugely significant, with the government claiming it will mean 300,000 taxpayers will no longer need to file their return. This is beneficial to people freelancing or selling things online.

If you need to reclaim your tax from work expenses, it may be in your best interest to continue filing self-assessment returns. This is where consulting accountants can come in handy, as they will provide the best guidance for you. You can contact Tewkesbury accountants, such as www.randall-payne.co.uk/services/accountancy/tewkesbury-accountants/, to provide further guidance on how to maximise your benefits from these changes.

National Insurance Contribution Refunds

Finally, the process for refunding NIC is addressing its claims process in order to speed up processing time, hopefully making refunds quicker and easier to access for those filing a claim. Voluntary NICs can be paid to cover gaps, too.