W L
LET ’ S GET DIGITAL – ARE YOU READY FOR MAKING TAX DIGITAL ?
by Alun Edwards of Clear Accounting
Celebrities , including Dragons ’ Den ’ s Peter Jones and Rhys Darby , manager of the mythical Flight of the Conchords , have been on our television screens for months now promoting the importance of digital accounting software , but soon this will be essential to any taxpayers who file income tax self-assessment for business or property of £ 10,000 or more a year .
The strapline “ Making Tax Digital ” ( MTD ) has been in circulation in the world of business for some time , with VAT registered businesses needing to submit their returns digitally since 2019 . The rollout of MTD VAT has been a huge success for HMRC with it finally becoming compulsory in April 2022 so all VAT registered businesses must now comply . Hot on the heels of MTD VAT comes MTD Income Tax ( MTD ITSA ) which will start in April 2024 for the self-employed and those with income from property and in April 2025 for most partnerships . MTD corporation tax is scheduled to start in April 2026 however this is likely to come later .
MTD ITSA will involve sole traders and landlords moving to a reporting system requiring returns and payments to be made periodically throughout the year rather than a single year-end return , as is currently the case . That doesn ’ t mean landlords and sole traders need to wait for April 2024 to get ahead of the game though ; signing up to digital accounting software is not only easy and cost effective but also has many advantages compared to accountancy methods of times gone by .
Quickbooks and Xero are among the most frequently used options and Clear Accounting is a certified advisor of both offerings , as well as having a vast amount of experience using Sage and FreeAgent amongst others .
Using cloud-based accounting software can also make keeping track of your income and expenditure hassle-free :
• Invoices can be generated straight from the software , and you ’ ll get notified when you are paid ;
• Reconciling your bank account is easy as bank accounts can be linked directly to it ;
• Receipts can be scanned either straight to the software or by using third party software such as Hubdoc and Dext ;
• It provides real time information – with up-to-date books and app or online access , you can know exactly where your business is at any moment in time .
Who are Clear Accounting ? With offices on Anglesey and in Capenhurst , Clear Accounting Ltd is a practice mainly covering North Wales and the North West but the movement to cloud-based accounting , digital software , and online meeting has rendered geographical restrictions a thing of the past . We can provide accountancy assistance to anyone who needs it and offer a range of services and price structures to suit all .
Our focus is to provide great customer service at a price which encourages good communication – too often we hear of clients being worried about speaking to their accountant , concerned that they will be stung with unexpected fees . That will never be the case with Clear Accounting .
Transparent pricing and a friendly face set us apart from the rest . So , if you have any questions about MTD or have any accounting needs , please call us on 0151 317 4918 .
Clear Accounting are proud supporters of the Tim Cogley Foundation .
32 wirrallife . com