What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) is HMRC’s new way of collecting income tax information from sole traders and landlords.
Instead of waiting until after the end of the tax year to complete a Self Assessment tax return, you’ll need to:
- Keep digital records of your income and expenses.
- Use compatible software.
- Submit quarterly updates to HMRC.
- Complete an end of year final declaration.
The aim is to make tax reporting more accurate and give business owners a clearer picture of their tax position throughout the year.
The First Quarterly Deadline
If you’re already within MTD, your first quarterly update covers the period from 6 April to 5 July.
The deadline to submit this update is 7 August.
Missing deadlines could lead to penalties, so it’s important to stay on top of your bookkeeping throughout the year rather than leaving everything until January.
Good News. We Can Now Offer FREE Software
One of the biggest concerns we’ve heard is the cost of MTD software.
The good news is that, through our IRIS Elements Tax platform, we can now provide compatible bookkeeping software completely FREE to our sole trader clients.
That means you can:
- Keep digital records.
- Meet HMRC’s MTD requirements.
- Submit your quarterly updates.
- Avoid paying for additional bookkeeping software.
It’s one less expense to worry about.
Not Sure If MTD Applies to You?
Many sole traders are still unsure whether they need to comply.
If you’re unsure whether MTD applies to your business, we’d be happy to talk you through it and explain exactly what you need to do.
Need Help With Your Tax Return?
Whether you’re new to self employment or have been completing tax returns for years, we’re here to help.
Our Self Assessment tax return service starts from just £200 + VAT, with straightforward advice and friendly support from our experienced team.
Let Us Take the Stress Away
Making Tax Digital is a significant change, but it doesn’t have to be complicated.
At Accountancy Solutions, we help sole traders, landlords and limited companies stay compliant while making the whole process as simple as possible.
If you’d like to find out whether MTD affects you, or you’d like to take advantage of our free software for sole trader clients, get in touch today. We’d love to help.
Sole Traders & Partnership Accounts for HMRC – Accountancy Solutions (Winchester, Hampshire)
The first quarterly update under Making Tax Digital for Income Tax is due by 7 August. We provide FREE IRIS Elements Cashbook software for our sole trader clients to help keep you compliant.
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- Accountancy Solutions is an accountancy practice based in Portchester, Hampshire, providing bookkeeping, accounts, tax and business advisory services to small businesses across Portsmouth, Fareham, Gosport, Havant, Waterlooville and the surrounding area.
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