Hi All
I know MTD (Making Tax Digital will come into effect in a few years, I'm still apprehensive. Has any other accountants looked more into this and have any advice.
Thanks
Faith
Hi All
I know MTD (Making Tax Digital will come into effect in a few years, I'm still apprehensive. Has any other accountants looked more into this and have any advice.
Thanks
Faith
Morning Faith
Making tax digital or MTD has been a requirement for businesses with an annual turnover of more than £85,000 since 2019. HMRC have postponed MTD requirements for self-employed individuals and landlords until April 2026 when it will become a requirement. All of these businesses with property income exceeding £50,000 a year must file their ITSA (Income Tax Self-Assessment) via MTD and for those with an income between £30,000 and £50,000, MTD regulations will apply from April 2027. The deadline for partnerships is April 2025.
I have many clients who are still in the habit of handing in a box of receipts at the end of the year, they are apprehensive when it comes to digital accounts and software.
My advice is the benefits outweigh any reservations you may have, here are my 6 pluses for digital accounting that software can give:
1. Connects to your bank feed—transactions are automatically pulled in, meaning you don’t have to print off or export bank statements, or enter things manually.
2. Automates data entry—saving you precious time to focus on running your business.
3. Provides 24/7 access anywhere—because it’s in the cloud, you can work on your books from anywhere with internet, on any device, at any time.
4. Gives you up-to-date financials—rather than having accounts at the end of the year, you can see real-time information about your business finances.
5. Keeps you compliant with HMRC rules—avoid penalties.
6. Allows your accountant to keep a check on your financial health—giving you reporting to aid business plans and real transparency.
Hope this helps, any other questions please let me know.
Thanks
Shaun
Morning Shaun
Thank you so much for the detailed information. It is good to know the 6 pluses that digital accounting software can give.
This is very helpful thanks Shaun.
Best regards
Faith
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