Making Tax digital

[Elsa TLC]

Im looking for a decent simple amounts app.
I
Whos using these , are they another minefield?.

Xero & Sage as well as others.

Whats your experience?

 

[aveatry]

Sorry cannot help but the government adverts on the radio all sound like it supposed to be really simple and free.
Seems to be an unnecessary faff for small businesses. I think its paving the way for government to receive tax owed 4 times a year instead of the current 2.

 

[aveatry]

Here is something I have spotted
Currently its over 50k before you need to, next year its over 30k and 2028 if you earn over 20k
But there is nothing mentioned if you earn under 20k, does that indicate that they are going to raise the tax threshold to £20k

 

[Elsa TLC]

Im of the thinking it would just make accounting easier

 

[ninjacat]

I use xero, but many business bank accounts seem to have it as part of the package for sole traders, I.e the monzo business account.

I found it helped me to focus on the returns rather than messing about with spreadsheets.

 

[chirpychippy]

The objective is to collect tax four times a year which imo makes sense. With paye the hmrc receive tax/ni contributions either weekly or monthly, whereas soletraders like myself pay it twice yearly.

Im curious how they will calculate the forecasted earnings. That will be a quarterly faff imo, it'll be a back a fourth of over paying or underpaying

In its current form its a trial, I know I fair few trades that aren't going to partake. I can also see an issue with C.I.S, some companies I sub to are worse than useless issuing the certificates.

If you want to be a sceptic it could be a way of better monitoring the financial affairs of businesses.