Updated: Jun 22
If you are self-employed or a landlord with income over £10,000, you are facing Making Tax Digital coming down the line and getting closer. Like a train coming out of the fog eventually, you are going to see the headlights.
And, if you have not planned for it, this could be a shock!
Jill has recently run a couple of webinars for clients and contacts to update them on the new legislation coming this way. With increased costs and the latest inflation figures anticipated to be heading to double figures, Jill is passionate about trying to empower businesses to be able to cope with yet more change, with ease.
"Although at first Making Tax Digital may be seen as yet more red tape and more cost and change, once you get used to an online way of working you will see its benefits in saving you time, keeping your finances more up to date and even helping you get paid quicker".
Here are a few keys points on how we are going to help small businesses over the next couple of months:
Don't leave it until too late.
Our advice is to start using software from April 2023, this will give you time to get used to it well before having to make quarterly returns in 2024. Furthermore, certain businesses that don't have a year-end of 31 March or 5 April, may be heading for a transitional year in 2023 - this is less than a year away now and needs planning when this year's tax is done.
By choosing which system works for you in the next few months, you will be ahead of the game and in control.
No scary headlights for you!
"We really like Freeagent for the smaller business and landlords. Also with this software, depending on who you bank with you may be able to get Freeagent free of charge - a saving of over £300 a year! "
3) Use it well!
This may sound an obvious one, but if you're going to go online with your bookkeeping, embrace it and use all its wonderful features.
You can also import your bank account directly into the software - no more ticking off bank statements it was a win-win for us!
4) Ensure your accountant uses the software and will file your returns within it
If you run your book-keeping via Freeagent or another software, choose an accountant that will be able to finish your accounts off within the software and file your return once checked directly to HMRC.
"I really want to help the small business face Making Tax Digital with confidence. My message is learn to use the software with help from your accountant and then the year end process should be relatively easy".