With the HMRC Making Tax Digital (MTD) changes taking effect from April 2018, businesses – including everyone who is self-employed and those letting out property – will update HMRC at least quarterly where it is their main source of income.
These businesses will be required to use digital tools, such as software or apps, to keep records of their income and expenditure. Businesses will use software that compiles their tax data as part of their ordinary day-to-day activity, highlighting any possible errors (for example, arithmetical mistakes or figures which look out of place) and offering prompts for information that might otherwise be overlooked. We recommend a range of bookkeeping software to compile the relevant data, which will then be able to feed it directly into HMRC systems via the Internet. Updating HMRC directly in this way will be secure, light-touch and far less burdensome than the tax returns of today.
Bookkeeping software we recommend:
- Xero
- QuickBooks
- Capium
- VT Transaction+/Cash Book
It is important to use the most appropriate accounting software, based upon the nature and size of your business. We are happy to provide training for you to use your own bookkeeping software, or you can leave this job to us and free up your time to do what you do best – running your business.