Making Tax Digital for Income Tax: Are You Ready?
Getting ready for digital bookkeeping and self-assessment tax returns.
What is Making Tax Digital for Income Tax?
This government initiative aims to change how we submit financial information to HMRC and calculate income tax owed. Making Tax Digital (MTD) for Income Tax is being introduced gradually. All VAT-registered businesses must already comply with MTD for their VAT payments. Now, attention is turning to self-assessment tax returns for sole traders and landlords.
Who needs to comply with MTD?
The next phase of MTD affects sole traders and those with self employed income, such as property landlords. The planned timescale is:
- Sole traders and landlords with qualifying income over £50,000 – April 2026.
- As above with qualifying income over £30,000 – April 2027.
- As above with qualifying income over £20,000 – April 2028.
Making Tax Digital Requirements
By introducing completely digital submission of information, businesses and people who need to comply with MTD must:
- maintain digital records,
- submit quarterly updates to HMRC, and
- complete Self Assessment tax returns using MTD-compatible software.
The days of relying on a manual cashbook or paper receipts are gone!
We understand that adapting to these new digital requirements may seem daunting. The friendly experts at Spicer & Co are here to help you. We’ll ensure your transition is smooth and efficient.
MTD-Compatible Bookkeeping Software
Several bookkeeping systems are compatible with MTD. Having worked with many software options, the Spicer & Co team recommends using Xero. We love its simplicity and intuitive functions. Plus, it offers real-time information, so you’re always fully informed. Our clients (new and existing) can enjoy a free switching service. (Many accountants charge for this support.)
It’s time to get ready for MTD for Income Tax.
Contact us for straightforward, jargon-free advice.
What our clients are saying...
Spicer & Co have been our Company accounts for 11 years now. We have found Spicer & Co a breath of fresh air. They are approachable with advise and they explain things in a language we understand, even with our Personal Tax returns with Spicer & co you can be sure of an excellent personal level of service. Whole heartedly we recommend them to anyone who insists on the very best!”
I have recently changed to Spicer & Co and I have found them to be very informative and very helpful. I would gladly recommend them.
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