Making Tax Digital (MTD) is a hot topic on our courses at the moment.
Under current plans, from April 2021 every business, including sole traders, will have to use special software to report turnover and business expenses every quarter. So that means as they go along, as opposed to all at once at the end of the tax year.
This is a big change, and HMRC seems very keen to push ahead with this project, in spite of everything else that’s going on in the country.
At the 2019 BECTU Freelancers’ Fair in London I caught up with FreeAgent, one of many software providers trying to corner the freelancer market once MTD is compulsory.
I asked Matt Perkins from FreeAgent about the cost, whether software will replace accountants, and how on earth we choose which software to buy.
If you were one of the many people who left everything to the 31st January tax return deadline, you might now be recovering from what I call the tax hangover.
It’s caused by a mixture of adrenaline, that feeling of wooziness because you’re not quite sure if you did everything right, coupled with relief that it’s over, followed hotly by the unpleasant realisation that you have to do it all again next January.