Making tax digital for Income Tax
2023 may seem a long way off but the start of a new tax year is the ideal time to get ahead and get to grips with the move to digital!
Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow HMRC's rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.
Under the new system you'll need to use compatible software to keep records and send an income and expenses summary to HMRC every three months. You'll be able to see estimates of how much tax you'll owe.
At the end of the accounting year, you'll send a final report and your tax for the year will be calculated. This is the point at which you'll claim any allowances and reliefs.
Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital service for Income Tax and if you are a self-employed business or landlord you can volunteer to get involved & use software to keep business records digitally and send Income Tax updates to HMRC instead of filing a Self Assessment tax return.
As well as having to be HMRC-ready going digital with your bookkeeping & accounting systems has other benefits too:
Automated bank feeds reduce manual entry
Everything together in one place
Easy expense tracking by uploading photos of receipts and auto-tracking your mileage
Stay on top of quotes, invoicing and payments
Instantly see a snapshot of how your business is doing
Manage your business on the go, anywhere!
At RockSalt we already work using cloud-based accounting systems and as a Pro-Advisor for Quickbooks we are able to offer clients favourable pricing, as well as our ongoing support & expertise to get you up & running in no time, taking the hassle out of managing your finances & giving you time back to do more of what you love!