Preparing myself for Making Tax Digital?

Preparing myself for Making Tax Digital?

10:50 AM, 19th December 2022, About A year ago 28

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Hello everyone, We’ve been advised that from April 2024 we will be required to make quarterly returns and an End of Period Statement to HMRC using software which is compliant with Making Tax Digital systems.

Our accountant has recommended Coconut accounting software. Does anyone have any experience with this or any other Making Tax Digital-compliant software? If so, has anyone used this system themselves or has it required an accountant’s input?

Any advice or suggestions are gratefully received.

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11:46 AM, 19th December 2022, About A year ago

There was an article today that it is likely to be postponed until 2026.

Laura Delow

12:05 PM, 19th December 2022, About A year ago

Fingers crossed it is postponed as to date I can't find any MTD software that accommodates Partnerships nor multiple income streams eg rental income + earned self employed income + dividend income etc


12:07 PM, 19th December 2022, About A year ago

Reply to the comment left by Olls63 at 19/12/2022 - 11:46
An article where? We know that mainstream media make it up as they go along. But if it came straight from the horse's mouth i.e. the housing minister....
Of course, it would be good if they did delay it, but we're going to have to face the music sooner or later, so establishing a decent software package now would be the time but I don't think that it's Coconut for me


12:17 PM, 19th December 2022, About A year ago

This is going to be a big topic as the date gets nearer.
I've always used Quicken 2003 which is powerful and more than adequate for my domestic, commercial and overseas property lets. But as it's old software, I have to use it on a PC running Windows XP which is fine but not ideal.
I'm looking for a comparable perhaps more LL dedicated package but as yet no luck.

Grumpy Doug

12:18 PM, 19th December 2022, About A year ago

Reply to the comment left by Neilt at 19/12/2022 - 12:07
It was in The Times a couple of days ago. Apparently there was a post on HMRC website that was then taken down shortly afterwards. A number of major accountancy firms are reporting it as well. Billions spent so far and still issues with testing and support from third party software vendors

12:24 PM, 19th December 2022, About A year ago

The taxation professional bodies have strongly suggested to HMRC that MTD be delayed but unless HMRC agree (and they won't necessarily) you are stuck with Apr 24 start date.
If you have more than one property and wish to understand profitability by property then Quickbooks has a facility called 'Class' that you can enable to link any transaction to a one or more properties. Been using it for years and its great.
Many of the leading software providers (Xero, Quickboks, Sage and others offer a scan to phone for bills and expenses which may work for you (it doesn't for me).
Otherwise use something your accountant is comfortable with.

Judith Wordsworth

12:29 PM, 19th December 2022, About A year ago

Treasury delays its programme to digitise the tax system for two more years

David Byers, Assistant Money Editor
Thursday December 15 2022, 8.05pm, The Times

The biggest changes to personal taxation in a quarter of a century are to be postponed for a further two years because the computer systems are not ready, triggering concerns that the government is set for another costly public sector IT disaster.

The Treasury is to postpone its programme to digitise the tax system — which would have forced 4.2 million self-employed workers and small businesses to file tax returns multiple times a year — from April 2024 until 2026.


12:49 PM, 19th December 2022, About A year ago

A number of software companies have been developing products / adding features to work for MTD for Landlords. Looks like their timescales will be moved! We are looking into FreeAgent (owned by NatWest - free for NW customers) - which looks interesting - they are updating their app to cater for Landlords (others software co's are available). The self employed + Landlords need to be convinced of the benefits of digitising their records and business processes first - rather than feel they are being forced reluctantly to use a software system for HMRC's benefit only. A lower tax bill / rate would be nice ! 🙂

Dennis Leverett

13:18 PM, 19th December 2022, About A year ago

No doubt another very expensive c**kup where govt. chummies are raking in $millions in consultation fees etc. I sold my on-line business in June 21 and used MYOB software for that which was brilliant but unfortunately wouldn't work beyond XP so installed a virtual XP which now won't work with Windows 10 or 11, not that I need it now. My income now is only pensions plus rentals which is not a business apparently, just unearned income, haha. Do we need digital just for Self Assessment tax returns?


13:51 PM, 19th December 2022, About A year ago

Current plan is for digital returns / quarterly reporting to be required where self assessment rental income (ie not as a ltd co) + any other self assessment income together are > £10,000 p.a (before any expenses ) - from April 2024 - expected to be delayed to April 2026 (already delayed from April 23). Limited co requirement for MTD likely to come after self assessment..

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