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5 Reasons why you should start using Making Tax Digital software now

We’ve all been guilty of putting off those tasks that we don’t really want to do – and for many business owners that includes switching to MTD compatible software!

The government have been slowly rolling out their MTD initiative since 2017 and with the deadline for Making Tax Digital for Income Tax Self Assessment approaching faster than you might like, here are 5 reasons why you should start using Making Tax Digital software now;

1. You’re going to have to sooner or later, so why not now?

From the 6th April 2024 (please note – the deadline has now been postponed until 6th April 2026), if you’re registered for self assessment income tax and have a taxable self-employed or rental income of more than £10,000, you must comply with MTD for Income Tax Self Assessment.

Making Tax Digital requires individuals and businesses to keep digital records (via spreadsheets or accounting software such as Sage) and submit their VAT returns digitally via HMRC’s online portal.

MTD is a mandatory government initiative (not, as some of our clients seem to think, your accountant being mean) so sooner or later you will have to comply. Putting it off is only delaying the inevitable. Switch to MTD now and you’ll rid yourself of countless sleepless nights!

2. MTD is a positive change!

No-one likes  change, but MTD (the government assures us) is a positive change! Designed to “make it easier for individuals and businesses to get tax right and keep on top of their affairs”. The long term benefits include reduced errors, increased confidence and time saved. Why wouldn’t you want to start enjoying those benefits now?!

3. Take advantage of competition amongst software providers

There are numerous accounting software providers out there and with the rollout of MTD they’re all vying for your business. Most are offering discounted subscriptions and even free trials. Now’s the time to explore your options and decide which software package would be best for you.

If you don’t currently use accounting software, unfortunately you are likely to incur a fee when you start. Whilst this may seem like a reason to put off complying for as long as possible, we would suggest that you take advantage of the deals currently being offered by some software providers.

Contact us to discuss your requirements in more detail or visit GOV.UK to find software that’s compatible for MTD.

4. Avoid the pressure of impending deadlines

We’re all guilty of leaving some things until the last minute, but like any new computer software, it will take time to familiarise yourself with your new MTD package. Make the change now and you’ll have plenty of time to do just that, without the pressure of impending deadlines.

At PW John & Co accountants in Weston-super-Mare our experienced team are proficient in all major accounting software including Sage, Intuit Quickbooks, Xero and Kashflow. Get in touch today to book your MTD training session.

5. It will make life easier for your accountant!

Think about your poor accountant – they have hundreds (if not thousands) of (mostly reluctant) clients to help through the changeover. If every client waits until the last minute, that’s going to cause headaches for them and you! And if you run out of time and your accountant is unable help you, it will be your responsibility to pay any penalties.

We hope that this article has convinced you of some of the benefits of using MTD software now. If you have any questions you can call our team on 01934 412097, email  or complete the form on our contact page and we’ll be in touch shortly.

Here are some more resources that you might find useful;

Self Assessment Tax

Accounting for Small Businesses

Accounting for Property and Landlords

Accounting for Agriculture and Farming

Accounting for Charities and Not for Profit

Accounting for Contractors and Subcontractors