How to avoid an unwanted text from HMRC
HMRC has trialled a new initiative whereby SMS messages are sent to taxpayers to remind them to pay up on time.
As part of the new ‘Digital Tax Regime’, 13,000 people who submit Self-Assessment tax returns and had been contacted previously about their debt — including numerous freelancers and small business owners — were sent one of four different messages by the government’s Behavioural Insights Team.
These are the messages used during the trial and the effect it had on the payment rate:
- ‘Standard’ message: alerting the recipient to their debt and instructing them on how to pay increased payments by 2.3%.
- ‘Monitoring’ message: informing the recipient that HMRC would monitor their debt repayment increased payments by 3.8%.
- ‘Penalties’ message: telling recipients that most people pay on time and outlining potential penalties increased payments by 7% (20% in relative terms).
- ‘Deadline’ message: warning recipients who were late last time to submit by the deadline increased payments by 50%.
The taxman already claims to have generated an additional £210 million through the SMS programme trial.
How to avoid an unwanted text
With advanced accountancy software — such as Xero — on their side, freelancers and small business owners streamline their Self-Assessment process and avoid an unwanted text from HMRC.
These are just some of the ways that advanced accountancy software can help taxpayers meet their Self-Assessment deadlines:
- Tax timeline: receive advanced warning of tax submission deadlines.
- Consistent calculations: review your tax liability in real-time as your figures are consistently recorded and recalculated.
- Direct submission: submit Self-Assessment documentation to HMRC instantly online.
- Expert accounting advance: synchronise your records with your accountant to receive timely, valuable accounting advice.
Find out how 3 Wise Bear’s advanced accountancy software can help you avoid a nasty surprise from HMRC.
