Making Tax Digital is here now. Does that mean my software testing journey is at an end? Absolutely not! Some software is still in development; other software providers have only recently made their Making Tax Digital for Income Tax features available. 𝗩𝗧 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲 is a UK-based company offering free and low-cost bookkeeping software. Their paid-for…
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For the last 17 years, I’ve been self-employed running my own accountancy practice. Here’s why I’m scaling back the amount of “done-for-you” compliance work that I do. Making Tax Digital for Income Tax Making Tax Digital (MTD) for Income Tax has been on the cards for 8 years now. That’s given me plenty of time…
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As an independent sales representative (eg, Avon), it’s tempting to think of the commission element as being your “income” for tax purposes. After all, that’s the only bit you get to keep. But the way it’s viewed for tax purposes, is that you’re buying the products from Avon at 70-100% of the selling price, and…
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Whether you do your own bookkeeping, or your accountant does it for you, chances are you’ve come across the term bank feed. But what is a bank feed, and do you really need one? What is a bank feed? A bank feed is a feature in bookkeeping software that automatically pulls your transactions in from…
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Tax is changing! But not for everyone. Here’s a quick reminder of what’s changing this year and for whom. 2026-27 (tax year starting 6th April 2026) Making Tax Digital (MTD) only starts on 6th April 2026 if the total self-employed and rental income (before expenses) shown on your 2024-25 tax return was over £50,000. If…
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There’s no easy way to answer that. The landscape is constantly changing and new products are coming to market all the time. But here are a few things to consider: 1. Are you looking for free or paid-for software? Although HMRC aren’t providing any free software, they have been encouraging software developers to provide MTD…
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It all depends on where you’re starting from, and whether you use more than one software package to handle your business record-keeping. If your business is straightforward, Making Tax Digital should be too. The main changes will be to make sure the way you keep your bookkeeping records in a way that complies with Making…
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Despite the advantages of using software, what if you’re happy using spreadsheets for your bookkeeping and don’t want to change? In this blog, I explore a free bridging software solution that enables you to keep using spreadsheets and still comply with Making Tax Digital. Making Tax Digital and spreadsheets If your combined income from self-employment…
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The short answer is – yes, you can – but here are some factors to consider: Which tax system are you in? If you’re in Self Assessment, spreadsheets are absolutely fine. You can keep your records in a spreadsheet and manually transfer the totals onto your tax return once a year. If HMRC have moved…
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I disagree. If you run your own business, it should be your choice who does your bookkeeping. Doing it yourself might be the right decision for you, it might not be. If the thought of doing your own bookkeeping appeals to you, here are some questions you can ask yourself. Bookkeeping can be time-consuming. Even…
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