Making Tax Digital
The UK Government – HMRC – is changing the way we report our finances.
Be prepared. Be positive.
We have been preparing for a while now to help ensure that you can make the transition to digital taxation. For some of us already using computer software to prepare our accounts and submit online there will be little difference; for others there may be a little more preparation to do.
Technophobes listen up! We know that changing the way you work is a hard pill to swallow but think for a minute about of some of the changes in your life that made things easier? Well, this is one of those changes! We are here to help you as much as we possibly can, so there’s no need to be nervous.
Accurate, fast and at your fingertips – online accounting
Whatever your situation we’ve got the answer and it won’t hurt as much as you think.
Here’s the latest
You will no doubt have heard about Making Tax Digital (MTD) before, we have emailed many times about VAT registered businesses with a turnover over £85,000 and there are more changes for self-employed businesses and anyone who has income from property:
Making Tax Digital for VAT
VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax digital rules for their first return starting on or after April 2022. If your turnover is over £85,000 you should already be signed up to some MTD compliant software.
Making Tax Digital for Income Tax
Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.
What do you need to do?:
- If you are VAT registered and NOT already signed up to Making Tax Digital – read the guidance here – https://www.gov.uk/vat-record-keeping/making-tax-digital-for-vat – NOTE if we prepare your VAT return we will sort this for you!
- If your taxable turnover from your self-employed business or income from property is above £10,000 https://www.gov.uk/guidance/follow-the-rules-for-making-tax-digital-for-income-tax-you have until 2023 to decide what software you are going to use, but must start from 6 April 2023.
Finding Suitable Software
We currently have clients using a variety of online packages, the most popular are:
- QuickBooks – we can get reduced rates for you and they are starting to run free 90minute onboarding sessions on how to use the software, which we can send you a link to.
- Freeagent – we can get reduced rates for you, also if you have a NatWest / RBS / Mettle bank account you are eligible for a free account.
There are other alternatives available.
If you have any queries regarding the above then, again, please do give us a call. We can help you through it all.
You can find the full text about the proposals, timescales on the UK Government Making Tax Digital web pages.
“Sooner rather than later” is ALWAYS a good advice.
We strongly advise that you don’t leave it until the last minute. Making plans and getting going early is a good way to dispel any concerns and make a seamless transition. But, whatever stage you’re at, you’re always welcome to call us for advice and guidance.
If you are asking yourself:
“Why not me?
“Why not now?”
The answer is “no reason whatsoever”, so, talk to me and let’s change your business for the better.
Read the success stories.