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dd

  • Posts: 2568
Re: Making Tax Digital - Compulsory from 2024
« Reply #20 on: July 18, 2022, 02:13:05 pm »
I am not particularly computer literate, I use a very simple paperwork system that - has worked for me over 30 years - and do not think this would easily translate to accounting software.

For me personally MTD seems complete overkill to solve a problem that does not exist. I do not employ people and my business is very simple. It is more likely to make me take early retirement (lucky to have that as an option).


Ched

  • Posts: 441
Re: Making Tax Digital - Compulsory from 2024
« Reply #21 on: July 18, 2022, 02:25:05 pm »
I am not particularly computer literate, I use a very simple paperwork system that - has worked for me over 30 years - and do not think this would easily translate to accounting software.

For me personally MTD seems complete overkill to solve a problem that does not exist. I do not employ people and my business is very simple. It is more likely to make me take early retirement (lucky to have that as an option).
In my opinion it's all about making it easier for HMRC to catch cash in hand type evasion and passing on the expense to the self employed!

I think it's trying to check outgoings vs income i.e. an average plumber might have 30% costs for parts per job but some may put through 80% parts. So by looking at regional trades and their average costs ( MTD will give them receipts)  HMRC might be able to see if trades are 'hiding' money from HMRC!

dd

  • Posts: 2568
Re: Making Tax Digital - Compulsory from 2024
« Reply #22 on: July 18, 2022, 02:35:13 pm »
I could easily not declare some cash income if I was so minded (I feel more comfortable simply being honest though).

What I am not clear on is the level of information that will be required, as opposed to the level of information I now provide on my tax return.

I understand the information has to be presented quarterly, but just not how much detail I will need to present.

Also I do not know if I can be bothered to get to grips with accounting software, which for me personally is just overkill.

Ched

  • Posts: 441
Re: Making Tax Digital - Compulsory from 2024
« Reply #23 on: July 18, 2022, 03:23:53 pm »
I could easily not declare some cash income if I was so minded (I feel more comfortable simply being honest though).

What I am not clear on is the level of information that will be required, as opposed to the level of information I now provide on my tax return.

I understand the information has to be presented quarterly, but just not how much detail I will need to present.

Also I do not know if I can be bothered to get to grips with accounting software, which for me personally is just overkill.
I agree. Seems like lots of hassle but maybe I just don't understand it. I should probably just ask my accountant if I should be doing something different.

dd

  • Posts: 2568
Re: Making Tax Digital - Compulsory from 2024
« Reply #24 on: July 18, 2022, 03:27:33 pm »
Looking online QuickBooks is £8 per month, seems a cost effective option for sole trader.

dd

  • Posts: 2568
Re: Making Tax Digital - Compulsory from 2024
« Reply #25 on: July 18, 2022, 03:30:27 pm »
I could easily not declare some cash income if I was so minded (I feel more comfortable simply being honest though).

What I am not clear on is the level of information that will be required, as opposed to the level of information I now provide on my tax return.

I understand the information has to be presented quarterly, but just not how much detail I will need to present.

Also I do not know if I can be bothered to get to grips with accounting software, which for me personally is just overkill.
I agree. Seems like lots of hassle but maybe I just don't understand it. I should probably just ask my accountant if I should be doing something different.
I used to use an accountant but when they retired i just did it myself. Not really rocket science for a small window cleaning business.

CleanClear

  • Posts: 14691
Re: Making Tax Digital - Compulsory from 2024
« Reply #26 on: July 18, 2022, 05:58:25 pm »
Looking online QuickBooks is £8 per month, seems a cost effective option for sole trader.

I posted previously mate, these are same far as i can work out and are HMRC compliant (?)  and they are free :

Crunch:  https://www.crunch.co.uk/pricing#compare-packages-ST

Sunrise: https://hprc.lendio.com/small-business-software/pricing/

I've snet a message to Chris at Aworka to ask if Aworka will do the job for us as is. I'll keep you all updated with what he advises.
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CleanClear

  • Posts: 14691
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Spruce

  • Posts: 8462
Re: Making Tax Digital - Compulsory from 2024
« Reply #28 on: July 18, 2022, 09:40:40 pm »
If you are earning less than£10,000 gross self employment before expenses you don't need to join the scheme. But you still have to report quarterly.

I presume this means that the program HMRC uses now will still be available.
Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

CleanClear

  • Posts: 14691
Re: Making Tax Digital - Compulsory from 2024
« Reply #29 on: July 18, 2022, 10:31:29 pm »
Ok, i got a response from Chris at Aworka:

I’m hoping to integrate Making Tax Digital for Income Tax by the time is is required, so you should be able to submit the figures directly from Aworka (I have already done this for VAT returns).

I am also working on Quickbooks integration, so that would be another option.

It isn’t required until April 2024, so there is a bit of time yet!
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CleanClear

  • Posts: 14691
Re: Making Tax Digital - Compulsory from 2024
« Reply #30 on: July 18, 2022, 10:34:36 pm »
If you are earning less than£10,000 gross self employment before expenses you don't need to join the scheme. But you still have to report quarterly.

I presume this means that the program HMRC uses now will still be available.

I make you right. But its not a programme they use , its just a web interface that allows you to submit your figures manually. I'd imagine like most of us have been doing for years.
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dd

  • Posts: 2568
Re: Making Tax Digital - Compulsory from 2024
« Reply #31 on: July 19, 2022, 10:36:53 am »
Looking online QuickBooks is £8 per month, seems a cost effective option for sole trader.

I posted previously mate, these are same far as i can work out and are HMRC compliant (?)  and they are free :

Crunch:  https://www.crunch.co.uk/pricing#compare-packages-ST

Sunrise: https://hprc.lendio.com/small-business-software/pricing/

I've snet a message to Chris at Aworka to ask if Aworka will do the job for us as is. I'll keep you all updated with what he advises.
Thanks. My experience of free services is that they usually end up getting you to pay for them.

With Crunch, Self Assessment Filing is an add on you have to pay for. Not able to log onto the Lendio website at present, will try later.