07484 855 083
office@ejl-accounting.co.uk
What Are Your Responsibilities for Making Tax Digital (MTD)?
REGISTERING FOR MTD AND HMRC COMPATIBLE SOFTWARE
If you submit your Income Tax Self Assessment (ITSA) form at the end of each tax year, you will have a start date of 6 April 2024 to provide everything electronically. If you follow a different accounting period, this will change during the 2023-224 tax year. When MTD is compulsory, all profits must be assessed based on the tax year and not the accounting year.
Instead of submitting your Self Assessment via the HMRC website, an accountant or posting a paper copy, you will need to maintain and submit all records using an MTD compatible software. You are also required to sign up for MTD through your chosen software.
-
MTD compatible software
Much compatible software is available and HMRC provides an extensive list (see link in the footer) to review. Check the list and see if you are already familiar with a package.
If you don’t know where to start, our chosen accountancy software is Xero (see link in the footer). It’s an affordable, easy-to-use solution and we’re more than happy to show you around its functionality to get you set up correctly. At the time of creating this knowledge hub, Monzo are offering a free six-month standard Xero subscription with their business bank account.
If you have a business bank account with RBS, NatWest or Ulster Bank NI, you may be eligible for a free FreeAgent (see link in the footer) account. This software is compatible with MTD.
As a client of Key Accountancy Services, you can take advantage of free Xero training to get you up to speed with the basics. We are happy to support you with alternative digital software, but we need to inform you that charges will apply.
Software costs will vary. Starting from around £70 per annum, we can offer smaller clients a Xero cashbook for £6-£6.80 per month. Weigh the cost of gaining access to free software against accountancy fees before making your final decision.
Click here to view the HMRC MTD compatible software list
Click here to load the Xero website
Click here to load the FreeAgent website
- Check with your business banking team if you have access to free digital MTD-compatible software
- Review the options available
- Calculate the pros and cons
- Talk to us about the software options if you’re unsure
Most digital software options will offer a free trial period. You may save on accountancy fees between now and April 2024 if you transition to MTD early because the process will be much more straightforward for bookkeeping, reporting and submission.
Subscribe to our Newsletter
Stay in Touch
During a free, no-obligation consultation we will happily take the time to understand your accountancy requirements and explain how our services and advice can support your business.
