END OF THE TAX RETURN
Preparing for digital business records
HMRC believe that a lot of small businesses do not pay the right amount of tax on their profits due to a delay in writing up their accounting records to the end of the year.
To resolve this problem, HMRC announced its intention to require businesses to record their expenses and income digitally, as near to the date of payment or receipt as possible, and update HMRC at least quarterly.
HMRC think that simple accounting software, such as an app on your smart phone, will make this task easy to do. Free software may be available for very simple businesses.
These changes are collectively called Making Tax Digital (MTD) but we suspect it is going to feel like 'making tax difficult' for many businesses.
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