If only being in business was about serving clients…wouldn’t it be fantastic?

But, as business owners, we must manage our finances and pay our taxes…on time to avoid penalties!

Very soon, the ‘paper side of things’ will be a distant memory as HMRC is rolling out the biggest change to the tax system in a generation.

Drumroll as making Tax Digital continues to steal the show for being most talked about in business and financial circles.

We’ve had the MTD rollout to all VAT-registered businesses, and now it’s the turn of MTD for Income Tax.

Are you registered for Self-Assessment?

If so, you could be one of those that face significant changes when it comes to filing your tax returns.

Let’s put you in the picture - What is Making Tax Digital for Income Tax Self-Assessment?

In a nutshell, for those eligible, instead of paper records and an annual tax return, it’s a move to software, digital records and quarterly updates to HMRC.  

Plus, finalise your taxes at the end of your accounting period and submit a final declaration.

By the way, not just any old software; it has to be compatible software to HMRC.

Who’s eligible?

All unincorporated businesses and landlords for Self Assessment with annual business and/or rental income over £10,000.

If your income is £10,000 or below, you can continue using the existing Self-Assessment system.

When will this be happening?

April 2024.
Plenty of time, then?

Nooooooo.

The cut-off point for our clients is April 2023 … to make sure everyone has time to prepare, learn how to use the software and be comfortable with what they are doing in their business.

If you want to learn more about the Making Tax Digital initiative, look at  the government’s website.