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Making tax digital for income tax

What is MTD?

Making Tax Digital for Income Tax is a new way of reporting earnings to HMRC. You will use software to keep digital records and send Income Tax updates instead of filing a Self-Assessment tax return.

Making Tax Digital (MTD) means you will no longer be able to keep and submit manual records and returns. The rules will be the same for VAT-registered businesses. You will need to keep and submit their records using software that supports Making Tax Digital, such as Xero.

It may be a good idea to update your systems in advance because the use of the software will be mandatory.

There is good news for your business here, as using accounting software will make your systems more efficient. You may find it’s saving you time, and you have a clearer idea about your finances.

Keeping up to date with your bookkeeping will enable you to make informed decisions for your business and save up for tax every month. Gone will be the days of stressful times before Christmas and saving up for your tax liability at the last moment.

Self-employed and Landlords

Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for Making Tax Digital for Income Tax from 6 April 2024.

General partnerships

General partnerships that earn over £10,000 a year must sign up for Making Tax Digital for Income Tax by 6 April 2025. These partnerships only have individuals as partners and all partners are jointly liable without limits for partnership debt.

What will you have to do?

• You will need to keep digital records of all your business income and expenses

• Send quarterly updates to HMRC.

• Submit an end-of-period statement when you finalise your business income and expenses for the tax year.

• Submit your final declaration and pay the tax you owe by 31 January of the following year.

• You will still need to send HMRC a Self-Assessment tax return for the tax year before you signed up for Making Tax Digital for Income Tax.

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Testimonials

Rea Moores Creates

Starting up my own business I had no idea how much would be involved in preparing the tax at the end of the tax year and how much time bookkeeping would take. Fortunately Jana was at hand to help me. She guided me through all the steps needed for her to submit the documents to the tax office, answered all the questions I asked, and put me at ease. I would recommend brush up accounting to anyone that needed this service.

QualClean Ltd

I have engaged Jana as the permanent accountant for QualClean Ltd as my accountant of 7 years advised me, he was retiring.
In the last 12-18 months I have become a little disorganised due to workload, illness and several other external factors. This has resulted in me not staying on top of my accounting, bookkeeping and invoice payment chasing.

In less than 2 months, Jana has very efficiently organised me and has set me up with a whole new system to aid my efficiency. Moreover she has been really proactive in pointing out issues in my bookkeeping and most importantly, my invoice chasing. This has resulted in recovering monies that I had no idea I was missing!

I thank Jana for her highly fastidious approach and care and I have no hesitation in recommending her to colleagues and friends.

Nikki Ayton

Brush Up Accounting was recommended to me by a mutual friend and Jana has been like a breath of fresh air. I needed someone approachable, professional and experienced and I got all three.

Jana was excellent at communicating with me and she has always got back to me within 24 hours (if not sooner). She has made an onerous task a lot simpler by explaining the process step by step.

I highly recommend working with Brush Up Accounting.

How we work

⭐ We'll set up up on Xero, Brightpay and other essential software.

⭐ We offer fixed monthly fees, reviewed quarterly, with options for video meetings and screen sharing. If you’re

local to Telford, we are happy to meet you in person too.

⭐ We will handle your bookkeeping, prepare detailed reports, and have an in person or a Zoom meeting to go

over your profits together.

⭐ We will discuss how much money you need to save for your tax, how much VAT you need to pay, ensure you

fully understand all of your finances, and answer any questions you may have.

⭐ With your account accounts done monthly, you'll have a clear and transparent view of your finances. This

will help you to take more money home, be in a safe financial position, and plan for a more profitable future.

⭐ We're well connected and can introduce you to other professionals to help you achieve your goals.

How we work

⭐ We'll set up up on Xero, Brightpay and other essential software.

⭐ We offer fixed monthly fees, reviewed quarterly, with options for video meetings and screen sharing. If you’re local to Telford, we are happy to meet you in person too.

⭐ We will handle your bookkeeping, prepare detailed reports, and have an in person or a Zoom to go over your profits together.

⭐ We will discuss how much money you need to save for your tax, how much VAT you need to pay, ensure you fully understand all of your finances, and answer any questions you may have.

⭐ With your accounts done monthly, you'll have a clear and transparent view of your finances. This will help you to take more money home, be in a safe financial position, and plan for a more profitable future.

⭐ We're well connected and can introduce you to other professionals to help you achieve your goals.