MTD - Delayed but not forgotten

Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.

Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital service for Income Tax. If you are a self-employed business or landlord you can voluntarily use software to keep business records digitally and send Income Tax updates to HMRC instead of filing a Self Assessment tax return.

Ok in my opinion they should start with and test the system with Limited Companies, many of whom will have bookkeepers or accountants and accounting packages in place, but we are where we are. and although April 2023 seems an age away its never too early to get started.

This year I have moved a couple of my smallest clients onto Quickbooks which I had delayed because of the cost (although relatively small with passing on my discount) and a perceived lack of economies. However, I have been amazed with the feedback that they feel more in control of their business finances and it saves them hours in administration time. So don’t delay move over to a digital platform now and keep all that data safe.