Making Tax Digital

Making Tax Digital

The HMRC website states the aim of Making Tax Digital (MTD) is ‘making it easier for individuals and businesses to get their tax right and keep on top of their tax affairs’.

Making Tax Digital is the new government initiative aimed at simplifying how UK businesses report their income, expenses and taxes. It ultimately means the end of annual tax returns for those who reside or do business in the UK.

Making Tax Digital

Whilst in my humble opinion it will make things easier for those who have grown up using smartphones, email and the ever advancing mobile communication technologies. It will present extra problems for those of a certain age or those who lack IT skills.

The best advice I was given 25 years ago, when I first became self employed was ‘get yourself a filing cabinet’. The best advice I would give 25 years later is ‘get a decent bookkeeping/accounting software package like Xero‘ and if you can’t afford it, MS Excel is a very capable bit of software.

If you do choose to use MS Excel with an add on like VitalTax, your VAT Return is sent to HMRC via the Making Tax Digital API (Application Programming Interface).

Even better than overpriced Microsoft products is an Open Source solution like Open Office or Libre Office, which are free, compatible with MS Office/Excel files and includes everything a small business owner needs for admin/accounts.

Making Tax Digital, HM Customs plan to transform traditional tax filing to an online filing system will effect Landlords, Self Employed, Company owners, and those on Self Assessment.

The aim of this website is to provide up to date information and provide honest reviews of the best software and services for those who don’t work in the Tax/Payroll industries.

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