Being cheap with being 'Making Tax Digital"

bikerchris

Hello all,

I wonder if anyone had any thoughts on this.

I recently started using FreeAgent, but because I'm cheap I'm using the Landlords version. I only provide a service and don't sell products. Does anyone know if this will be ok with the taxman? The landlord version gives me everything I need, Landlord is £10 and Self-employed is £25 - just trying to save money.

Thanks in advance.

Cheers, Chris

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6665689/being-cheap-with-being-making-tax-digital

If you aren't in fact a landlord but are self employed are you absolutely certain you will be able to submit the correct information to HMRC?

bikerchris

https://forums.moneysavingexpert.com/discussion/comment/81977110#Comment_81977110

That's ultimately my question.

SVaz

Get a free Mettle business account and you get freeagent at no cost, they work in sync and make tax returns simple.

bikerchris

https://forums.moneysavingexpert.com/discussion/comment/81982999#Comment_81982999

Thanks for that, I did look into that a while back, unfortunately all the time it would take the move banks, would effectively cancel out the saving. But thank you for thinking of it.

sh_clearmtd

Ha, nice try! In practice HMRC don't know or care which subscription tier you're on. All they see is the data coming through their API — they've got no idea whether you're paying £10 or £30/month.

So as long as FreeAgent's landlord tier lets you submit quarterly updates with self-employment categories (not just property ones), do the End of Period Statement, and file the Final Declaration, you're technically fine.

The risk is more practical than legal though. If the landlord version only gives you property expense categories (mortgage interest, letting agent fees, ground rent etc) and not the self-employment ones you actually need (materials, vehicle, professional development), then your submissions might look a bit odd or you'll be cramming expenses into the wrong boxes.

Worth checking whether you can actually enter income as self-employment rather than property, and whether the expense categories work for your business type. If they do, crack on.

If not, there are MTD tools from about £7-9/month that are built for sole traders and might actually be simpler than trying to make a landlord product work for something it wasn't designed for.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6665689/being-cheap-with-being-making-tax-digital

I know this is MSE, but if things are so tight that the saving of £15 is needed at the risk of not even knowing whether tax submissions are correct, then is it really a viable business? Would it be better to call it a day and take on employed PAYE work?

LITRG

Hello, we have an MTD software page with guidance about choosing software, including a checklist - hope this helps. Thanks. Choosing Making Tax Digital software | Low Incomes Tax Reform Group