A few people are aware of the changes coming up in the next couple of years, but a lot aren't. It's going to be one of the biggest shakeups in recent history to the way personal taxes are reported, and it's better to be aware of them now, or else you could be scrambling to get ready at the deadline.

HMRC have been modernising their IT systems, which allow them to handle more information. In turn, they want more from businesses on a more regular basis The first phase was Making Tax Digital for VAT, which is currently mandatory (With a few exemptions) for anyone VAT registered and earning over £85,000 gross per year. In April, this begins to affect all VAT registered businesses, regardless of turnover, and in April 2024, it will affect all businesses and income tax assessable individuals, regardless of VAT registration, if they earn over £10,000 per year from nearly any income source (Self-Employment, property rental, dividends etc).

Long story short, you'll be required to make a quarterly return to HMRC stating your income and expenditure for the 3 months, starting from April to June 2024. These need to be submitted either on HMRC recognised software, like Quickbooks, Xero etc, or by excel and bridging software, but that will only be a temporary fix.

If you're VAT-registered but earning underneath the threshold, this effects you next month. Why not get in touch to see what we can do about modernising your bookkeeping systems? If you're self-employed and looking to get off the manual papers and get more relevant information at your fingertips, we can get you set up in plenty of time before the new deadlines come in!