Making Tax Digital. Do I need to install new software?

dllive

Hi all,

HMRC have sent me a letter about the new Making Tax Digital software. They say I need to purchase software in order to 'record' and 'report' my income and send quarterly updates.

I have an accountant. Each year I send him all my receipts and spreadsheets showing income/outgoings. He then submits my SA using his accountancy software.

So because he handles that, do I need to install the Making Tax Digital software?

Thanks

greatkingrat

Surely that is something you will need to discuss with your accountant? They will almost certainly have suitable software to make the returns, but they may charge you more to submit quarterly rather than annually.

badmemory

Have you worked out how many tax accountants used to work for HMRC before they were discontinued.

HMRC now want more & more people to have to employ accountants, mostly unnecessary.  Just who wrote the software that you need to pay for.  Conspiracy theory 101.

uknick

badmemory said:

Have you worked out how many tax accountants used to work for HMRC before they were discontinued.

HMRC now want more & more people to have to employ accountants, mostly unnecessary.  Just who wrote the software that you need to pay for.  Conspiracy theory 101.

Probably very few, if any, actual tax accountants work/worked for HMRC, but there would have been many ex-staff who knew the tax rule books back to front and front to back.  A few of these may have moved into private practice, but I doubt there are many.

sheramber

It was common practice for ex inspectors to
move into local practices that they had already had a relationship.

Some did set up on their own  to prepare accounts  and submit returns. 

badmemory

There used to be an awful lot.  As a self employed bookkeeper I worked for several.  I did the work they charged for accountancy.  What do you think those high grade HMRC employees did when they were got rid of.

Jeremy535897

If your turnover was over £50,000 in 2024/25 you will have to enrol in Making Tax Digital from 6 April 2026. That means it will no longer be good enough to give your accountant a load of paperwork and spreadsheets at the end of the year. You should discuss what you are going to do with your accountant.
One option is to choose an accounting package to keep your records. Full blown accounting software can be around £20 a month upwards. You could also explore FreeAgent.
Alternatively you can keep doing the spreadsheets and use bridging software, or just send them to your accountant quarterly rather than annually.