What is Changing?
Tax legislation is constantly changing with Making Tax Digital for Income Tax and Self-Assessment (MTD for ITSA) which will be mandated for unincorporated businesses and landlords from April 2024.
This means that if your income from self-employment or property is over £10,000 it will have an impact on how often you should declare your income.
Although there is plenty of time ahead of the mandatory deadline, starting to keep digital records now can bring significant benefits to your business. The most important aspect is that the threshold of £10,000 is based on the turnover (which can be easily met) and not profit.
What should you do now?
The sooner you map your journey to MTD for ITSA the better.
Basically you need to:
- Find compatible software which allows your to scan your expenses and process your income
- Sign up for MTD for ITSA through your digital tax account
- Start keeping digital records of all business income and expenses categorised in line with Tax reporting
- Send quarterly updates and send a End of Period statement at the end of the tax year
- Send a Final Declaration, this will include income from other sources such as dividends and savings interest
Now, one thing we know is, you are not an accountant and while all the above might seem straightforward to do, it is probably better to leave it to someone who knows what they are doing. 😊
With Vision Accountants, you will have 24/7 access to the cloud bookkeeping software Xero, which is trusted by freelancers, contractors and small businesses to provide a real-time overview of your accounts.
We are a paperless accounting practice. This means you get access to apps that will allow you to scan receipts and send sales invoices as you go. Also, we will connect your business bank account to the accounting software (Xero), so you won't need to download and send us a bank statement. This is in return will save you time (and paper), and means you have tidy books! Because we review every transaction, you will have meaningful financial information to measure how your business is going in real-time rather than waiting until the end of the financial year.
As a sole trader or freelancer, it takes just minutes to register with Vision Accountants. Simply authorise us to represent your creative business and we’ll do the necessary groundwork to ensure that you operate legally, safely and with efficiency at heart during your early phases of growth and beyond.
Here is what you get with the sole trader package:
- MTD for ITSA compliant
- HMRC registration
- Advice from your own dedicated Chartered Accountant
- 24/7 access to your financials (Xero and bookkeeping tools access)
- Monthly review of bookkeeping data
- Quarterly returns as per MTD for ITSA
- End of Period statement at the end of the tax year
- Tax planning advice to help maximise tax efficiency
- Preparation of annual Self-assessment tax return
- Assistance with HMRC records checks
£80 + VAT (if paid monthly)
£64 + VAT (if paid annually)
Get in touch
We can be next to you, every step of your journey, to meet your changing needs