The Davies Tracey MTD Hub
As we progress towards the April 2024 start date for Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA), we will use this page to bring together all updates and useful information for our clients.
AUGUST ’22 UPDATES
What action to take now – Whilst there is no rush to sign up (HMRC are allowing eligible businesses to voluntarily sign up, but we expect to be able to ‘bulk sign-up’ our clients – and this option is not yet available), you would benefit from gaining an understanding of the advantages of using digital systems.
Having up to date financials is obviously invaluable, giving you an understanding of your performance at any time – so you can make smarter decisions faster.
Do please also ask us about any of the following expected advantages:
> An easier way to keep on top of your tax obligations.
> The ability to keep digital records and submit tax returns digitally, reducing human error.
> More visibility of cash flow.
> More awareness of how much tax you owe, so you can set correct amounts of money aside.
> Access to technologies such as artificial intelligence (AI) to automate tasks, which means less time on administrative tasks.
> The ability to spot accounting mistakes sooner with more regular checking of data.
> Better collaboration by connecting software to the Davies Tracey system.
> The ability to easily capture receipts using mobile apps.
More coming soon
JULY ’22 UPDATES
Approved Software – Prior to registration, businesses must ensure they are using compatible software. There are only 4 available now – Xero (our recommendation), Apari, Cirrostratus Exedra Limited, and Untied. Read about each of these options, including costs and usability, here (link to trusted external website).
Basis Period Reform – We have previously shared information on this measure, which changes the way trading income is allocated to tax years, and will affect self-employed traders; partners in trading partnerships; other unincorporated entities with trading income, such as trading trusts and estates and non-resident companies with trading income charged to Income Tax.
This measure will only affect businesses which draw up annual accounts to a date different to 31 March or 5 April. If this is you, please read HMRC’s proposal here, and talk to us about your transition.