• Monday Apr, 11, 2022

What Making Tax Digital Means For The Self Employed

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Making Tax Digital for the Self Employed

As HMRC continues its push to digitalize tax administration it is very important for the self-employed to not fall behind in this modern era, moving on from the older models of financial management that are quickly becoming inefficient.

By the 6th of April 2024 the government will be hoping to make a law for all landlords and unincorporated businesses with a total income of over £10,000. They will require an MTD (Making Tax Digital) using ITSA compatible software. This may sound confusing, however simply put it is now required to use government approved accounting software for your businesses taxes. Submitting manual records and returns will no longer be an option.

How does it affect me?

HMRC’s plan is targeted at smaller businesses and especially those who are self-employed. Here are the benefits of MTD:

  • The software is more effective
  • Better efficiency, meaning more time saved
  • It will help in preventing, pointing out and getting rid of all mistakes through an automatic process.

Which Software can I use?

Be noted that if you are self-employed and still deciding, the more popular accounting software like Xero and Sage are still waiting for HMRC recognition. If you want more information on this or Making Tax Digital click here.

As of right now here are the examples of the current government approved software’s ;

  • APARI Software Ltd
  • Cirrostratus Exedra Ltd
  • Untied

If you are self-employed and worried about Making Tax Digital feel free to contact us here.

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