Latest news from Simply Accounts & tax
Making Tax Digital for Income Tax update
The government is extending the requirement to operate Making Tax Digital (MTD) to the 4.2m taxpayers with business and/or property income over £10,000, including landlords, sole traders and partnerships, for their Income Tax obligations.
These changes will apply to businesses, self-employed individuals and landlords who are chargeable to Income Tax.
Making Tax Digital (MTD) is the first phase of the move towards a modern, digital tax service fit for the 21st century. It supports businesses through their digitalisation journey and provides a digital service that many have come to expect in their everyday lives. MTD and its extension forms a crucial building block in the government’s 10-year strategy, ‘Building a trusted, modern tax administration system’, published 21 July 2020, to make the tax system more resilient and effective, to boost business productivity, and better support taxpayers.
The Government recognises the challenges faced by many UK businesses as the country emerges from the pandemic over the last two years. In recognition of this and of stakeholder feedback and will now be introducing MTD for income tax self-assessment (ITSA) in 2026.
Since MTD was announced, we have been working with many of our clients to help them streamline the way they keep their books and help them prepare for digital bookkeeping ahead of the law change. If you haven’t moved your bookkeeping onto a digital package then please talk to us.
Just suppose you:
- Took a photo on your phone of a purchase invoice and it was posted automatically;
- Had a system where your bank fed your data directly into your accounts on a DAILY basis;
- Could see your results, who owes you money, who you owe and your business bank balance 24/7, 365 from your smartphone;
We can help you put in a cloud accounting package and get you:
- A clear picture of your current financial position, in real time.
- Put your books 100% online, so there’s no software to install and everything is backed up automatically; and
- Eliminating upfront accounting software costs– upgrades, maintenance, system and administration costs are no longer an issue.
Please talk to us about the advantages of a cloud accounting package, you will be amazed at what a difference knowing your results in real-time makes to your business.