The law to implement the online quarterly reporting of accounts and tax information, known as Making Tax Digital (MTD), was not passed before Parliament was dissolved, but that doesn’t mean the project has been scrapped.
HMRC is investing a huge amount in the digitisation of the tax system and the MTD project will continue, whichever Government is in power after the General Election. It is possible that the timetable to roll-out MTD may be tweaked to delay some aspects until 2019. This would be welcomed, as the software providers need more time to develop accounting software which will suit all types of taxpayer and all budgets.
In the meantime, take a hard look at your own accounting records. Are your business receipts and expenses mixed up with your private expenditure? If you have a separate business bank account, it is far easier to collect only the business-related items and report them to HMRC. Could you use an app to record your business mileage accurately?
Let’s talk about how some simple changes in the way you record expenses and sales could make your life a bit easier.