All Change Here - Digital Accounts For Self Employed People
Updated: Sep 23, 2021
At Hubu Accountants, we work with our clients in many different ways, depending on the individual needs of their Business. One of the services we offer to all of our clients however, is informing them of upcoming changes in the World of Finance, and how it may affect them and their Company Accounting process.
MTD for VAT has been in force since 2019, so some Business Owners may be aware of the processes involved. However; for all Self Employed people, there are a few major changes coming in the next couple of years that you will need to be aware of. The main one which we will be talking about here, is the change to how you keep and report your Business records to HMRC.
From April 2023, a new process called MTD for ITSA will be in force; there will be a stepping stone system in the tax year prior to this, and most Businesses will have 2 years to prepare and test the service voluntarily before it is fully introduced. However, if you are a Self Employed person it would be a good idea to visit the Government Website to find out more information or contact your Accountant to ask them how it will work in more detail.
“MTD for ITSA will apply from April 2023 for unincorporated businesses and landlords with total business or property income above £10,000 per year.”
In a nutshell, this means that all Businesses and landlords who join MTD must keep their Business records digitally and send tax information to HMRC directly from those records.
There are several software programs and apps out there that can help you to keep a digital tax and accounting record, such as Quickbooks, Xero and Excel (via bridging software). But with all of these software packages it’s a good idea to still use an Accountant to check your records in case anything has been missed. The great thing about these programmes is that your Accountant can have their own access to the Accounts, meaning they can check information remotely and efficiently, ensuring you are always kept up to date with any errors. As Hubu are Quickbooks specialist Accountants as well as Xero expert Accountants, we are often the first port of call for people searching for a tax accountant in their local area for this very reason.
If you’d like more information about getting ready for the MTD for ITSA change, or if you’re looking for a certified public accountant in Blackwood Wales, please get in touch with HUBU Accountants today - 0800 206 2625 - we’d love to help!