Making Tax Digital
MTD for Business is Expanding
Currently only VAT registered businesses are mandated to sign up to HMRC's 'Making Tax Digital' (MTD).
MTD for Income Tax Self Assessment (ITSA) was originally expected to be mandated in April 2023, but the Government has since announced a various postponements so that it is currently voluntary to sign up.
MTD for ITSA requires businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter using compatible software. For individuals, MTD for ITSA will be made compulsory in two phases:
from April 2026, for those with qualifying income over £50,000
from April 2027, for those with qualifying income over £30,000
Qualifying income refers to an individuals total sales and/or rental income before the deduction of allowable expenses, not their taxable profits.
If you are one of the businesses that are affected, fear not, we are here to help!
Whilst many small businesses see MTD as an additional burden, we know this change can really improve processes and drive improvements in business. Yes, there will be an initial resource outlay involved, and yes it may take some time too. However, have no doubt that up to date accurate and reliable information is crucial for any business in today's economy.
We can advise on a suitable software provider and help get you up and running; we'll even be able to provide hands on training too. Once set up you won't look back. You'll have real time information available at the your fingertips, you'll always have a really good idea of your commitments and what funds are available at any given time, but more importantly, you will be making strategic decisions on current information.
If you have already moved your records keeping onto fully compliant software and you want an accountant to help with monthly, quarterly and annual reporting/tax, then we can tailor our services to give you just the right amount of support at an affordable cost.
Software Providers
We are already a partner and certified advisor with Xero, who we believe have the best software for the majority of cases. Their enhanced audit trail means and high functionality mean that we can work efficiently with a client's data . However, we work with many software providers to ensure a solution that is suitable for each individual customer. We work with QuickBooks, Freeagent, and many others, and will continue to support any compliant software.
Whatever your needs, whatever stage you are at, we can help. We would love to hear from you, so why not give us a call to find out more about the accounting, tax, finance and business services we can offer? We can arrange a no obligation complimentary consultation to discuss your requirements in detail and determine what we can do to help. Why not contact us today?
We cover most of South Devon, including Torquay, Paignton, Brixham, Totnes, Newton Abbot and all the surrounding villages.
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