By now readers of this newsletter should be aware of the impending arrival of Making Tax Digital. Staging dates are:
- April 2018 sole traders / partnerships over vat limit – Income Tax and NI
- April 2019 sole traders / partnerships under vat limit – Income Tax and NI
- April 2019 all vat registered businesses for VAT
- April 2020 companies for Corporation Tax
One aspect of MTD is people will need to use an accounting package to send quarterly updates to HMRC.
In anticipation of this we’ve recently partnered with FreeAgent, a well regarded accounting software package for small businesses, especially popular with Freelancers and Contractors.
At present there is no need to take any action, but if you want to think about switching away from spreadsheets and onto FreeAgent then please get in touch – amongst other things we can offer a discount to RRP if you join via ourselves – see the pricing on our website.
Theres no requirement to use this package – if you have another in mind, thats fine, we will try and support all of them.
And what of spreadsheets? HMRC are suggesting people will be able to continue using them, but they will have to connect to HMRC “via additional software” – we don’t know what that will mean yet, but something like Freeagent is probably going to be the way ahead.