Prompted by a webinar from Xero, we are sharing guidance for the upcoming changes to Income Tax submissions for sole traders and landlords, that are being introduced by HMRC under the snappy name of MTD, or Making Tax Digital.

This is a compliance task that will impact most sole traders in the long run and we were urged to get ready early and not leave it to the last minute. That goes for ensuring our community and customers know about this, and action it.

It is not the time to...

• Fear monger.
• Use the first result in Google when inquiring about MTD,
• Rush ahead without planning the changes to your business properly,
• Ignore it until last minute!

It's time to...

• Thoroughly research how this will impact you and your business.
• Use credible resources and listen to accounting professionals on how you can go about changing your business.
• Find out how accounting softwares like Xero's beta product can make it easier.
• Ask other business owners, and be transparent in asking for advice.

This applies to everyone

Preparing your business for change before MTD requirement hits, is actually the best thing you can do. These changes happen in a business anyway, such as a chosen change like a new venture, expansion, or a move into new products and services.

Have you prepared your cashflow forecast, communicated well with staff and customers, considered the risks, implemented control systems and processes? Good preparation, rather than deadlining, will help make those business changes into positive experiences.

Resources to Help

Making Tax Digital (MTD)

Use only direct and credible sources when learning about MTD. Here are some links to websites that can help you get started if you haven't already:

Making Tax Digital for Income Tax - Gov.uk

Find software that works with Making Tax Digital for Income Tax - Gov.UK

Making Tax Digital, simple with Sage - Sage (Accounting Software)

Making Tax Digital – Everything you need to know - Xero (Accounting Software)

Friendly and understanding accountants

JR Management Accountancy's aim is to give business owners the peace of mind that everything is being done in a timely and professional manner. Learn more about our services, and hear from our customers.

Quick and Credible 2-minute reads

Big MTD Updates for Income Tax: 6 Reasons Why Bookkeeping Matters

An Instructive UK VAT guide to the 3 rates, schemes and MTD

HMRC's New Rules on P11D Payrolling Benefits

4 Critical MTD Facts for Income Tax and the self-employed