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The Office of Tax Simplifications (OTS) has recommended a new Individual Tax Account that combines the features of the current personal tax account and business tax account, meaning all the income of an individual is held in one place.

Welcomed by the Low Incomes Tax Reform Group (LITRG), the report has made other suggestions, such as allowing people to make ad hoc payments towards their tax bills when they have spare income.

The OTS says that the new Individual Tax Account should have a facility to allow for payments to be made at any time and in any amount, allowing complete flexibility for the taxpayer so they can make ad hoc payments if and when they want to.

The report is published as the number of self-employed people is growing, rising from 3.3 million in the year 2000 to 4.96 million this year.

Thinking of appointing Dolan Accountancy?

Give us a call on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

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Victoria Todd, Head of LITRG Team, said,“By combining the two existing tax accounts into one, the self-employed individual would get a clearer view of their total income. It should enable people to have an overview of their overall tax position in ‘real time’ if the data is kept up to date by HMRC, relevant third parties and the individual taxpayer.

“Allowing taxpayers to make ad hoc payments would give far more flexibility as to when they make payments and how much they pay at any one time and some self-employed people may find this helpful. LITRG recommends that further work is done to explore the idea in more detail including what impact it may have on DWP benefits and how it would work in practice.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Thousands of Contractors Choose Dolan Accountancy

With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust.

Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795 100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours
  • Free use of Contractor Umbrella – With IR35 Legislation changes we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams
  • Free Access to FreeAgent – We offer all of our clients access to FreeAgent, free of charge
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few
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