Government Consultation on Payment of Taxes
The UK government is undertaking a consultation in respect of the timing of payment of taxes. In particular it is looking at speeding up the payment of both corporation tax and income tax paid through the self assessment system.
The intention is that taxes should be paid closer in time to the period in which income is earned.
Over the next few years, with the introduction of the Making Tax Digital system (MTD), quarterly trading figures will need to be submitted to HMRC. This would offer HMRC figures on which to base interim payment of both income tax and corporation tax.
However the government’s announcements in the past have stated that the introduction of MTD was not designed for the earlier collection of tax.