Making Tax Digital (MTD) for Income Tax is starting in April

Here's what you need to know and how you can prepare:

Sole traders and landlords earning over £50,000 in the 24/25 year YOU are IN MTD for Income Tax Self Assessments.

What changes should you expect?!

For a start you now have to submit your tax returns digitally through approved software. Our practice specialise in FreeAgent and Xero for this :)

Instead of just 1 annual return to HMRC you will need to do 4 submissions throughout the year AND a final declaration confirming everything is correct. This is NOT 5 tax returns, it's not increasing your accountancy fees by 5 times, there will be a reasonable adjustment for checking and submitting accurate figures obviously, and the benefit of having quarterly meetings to discuss how things are going can feel priceless :)

How can business owners prepare for this now?!

We've created this handy checklist that breaks down into simple steps the things you can get in place now. It's not too late to get in touch with us to help get this in place.

Wait, so I just need to be on software and get a bookkeeper on board to help me figure it out?

YES!!! It really is that simple - we're taking on MTD clients at the moment and so it's the perfect time to get in touch.

To Summarise:

If you're self employed or a landlord with a sales figure of £50,000 or more (combined) you need to registered for Making Tax Digital with HMRC. Then you use accounting software to submit quarterly tax figures. With a final declaration submitted before you pay your tax on 31st January.

The tricky bit can be getting started - we can help! Don't put it off, book a call with us and we'll find out how we can work together to get you ready for these changes in tax.

Book a call!