Did you know that by April 2024, self-assessment income taxes will be required to be fully digital?
If not, no need to worry. We are here to help and give you some useful information.
For those who are self-employed, own a business or are a landlord then by April 2024 instead of filing your returns through HMRC’s website you will need to keep digital records/copies within approved software. As well as this, you will be required to submit quarterly updates to HMRC.
The first step of the Government’s MTD (Making Tax Digital) was rolled out in April 2019. This required all UK VAT registered businesses with a turnover above the VAT registration threshold to submit their VAT returns using compatible software and to store their financial records relating to VAT, digitally.
One of the main reasons for this change is due to the increased accuracy the software provides. According to HMRC in 2018/2019 there were avoidable mistakes which cost the Exchequer £8.5 billion. With this new software in place, there will be fewer inaccuracies which in turn means less tax lost due to these errors.
All of these changes may sound daunting to those who are currently dealing with their own accounts and taxes but that is where we could step in. MoulderAS specialises in helping small businesses and the self-employed, especially in times like this.
Despite some of the information sounding over complicated the ultimate goal for this transition is to simplify the tax process for all of those involved.
We understand that 2024 may seem like a long way away, but we would recommend getting in touch with us sooner rather than later. This will allow time for you to familiarise yourself with this new system and allow us to explain the changes.
If you are self-employed or a small business owner, who has been reading up on Making Tax Digital and feels confused or unsure how to take the first step in this new digital platform, then we are here to help. At MoulderAS, we are here to support you in any way we can especially during changes like this.
Not only at MoulderAS are we focussing on MTD for small businesses just like yours, but we have the expertise to also assist with payroll, year end accounts, VAT returns and bookkeeping to name just a few of our services. As a small business ourselves we are fully aware of the challenges out there. Just think of the time you will be able to free up if MoulderAS handles your financial obligations, allowing you to focus on your business rather than worrying about your HMRC requirements.
If you have any questions about MTD or any of the services we offer then please do not hesitate to get in touch via our Contact page. We would love to hear from you!
EDIT: As we publish this, although all of the above stands, HMRC announced on Monday 19 December 2022 they will be delaying MTD for ITSA until April 2026. We still, however, recommend getting on top of MTD for ITSA as soon as possible.