As you may be aware VAT registered business have had to register for Making Tax Digital (MTD) since 1.4.2019.
However, as from April 2026, MTD will also apply more generally to the self employed & property business owners, where income from these sources exceeds £50k pa. In 2027 the net will be spread still wider, and will apply where income from these sources exceeds £30,000.
The changes are likely to have a significant impact on the way many small business maintain their accounting and tax records. For example, you will no longer be able to use manual records, or spreadsheets, for preparing your accounts. Nor will you be able to use older versions of accounting software which you may have relied upon for years. It is also likely (but not yet confirmed) that we will all have to file 5 returns time each year (4 quarterly returns and 1 post year end) and you will not be able to use HMRC software to do so.
I therefore recommend getting yourself ready for MTD now – well ahead of time – if only so that you have some basic knowledge and don’t have to pay your accountant to do all the additional work for you!
The following are some links to typical packages, outlining current pricing and functionality:
Quickbooks –
https://quickbooks.intuit.com/uk/pricing/
Xero –
https://www.xero.com/uk/pricing/
If you need any help in deciding which software to use, or adjusting to MTD more generally, please give me a call or email to arrange a meeting to discuss.