We’re going even more Digital. Are you ready?
24 August 2020
Are you MTD ready?
You may have heard about MTD when VAT first went digital. The bigger picture is that eventually most of the HMRC compliance will go digital. The next stage of the digital move is MTD for VAT registered business below the threshold and MTD for income tax.
What does this mean for you?
Well, if you are VAT registered business with a turnover of less than £85k and are not already submitting your VAT returns through MTD compliant software then from April 2022 you will need to go Digital.
Or, if you are self employed or have rental income of £10k or more you will also need to go digital from April 2023 to file your tax returns.
How do you go Digital?
HMRC are concerned about transposition errors. Apparently, there are many errors costings millions in lost revenue caused by transposition errors (taking your calculating liability and inputting it onto HMRC portal). HMRC would like you to submit your VAT returns and tax returns directly from your software to avoid these errors. There are a wide range of software available to help you do this. Unfortunately, most good software involves paying a subscription fee.
What would be a cost-effective solution?
Thankfully, there is a cost-effective solution available to help you comply with the new requirements. You can open a business account with Mettle (online only version of Natwest). One of the main benefits of banking with Natwest and Mettle is that you can subscribe to FreeAgent (online bookkeeping software) free.
As a small business owner, it’s important to have a separate bank account for your business. It makes it easier for you to organise your finances and to monitor your cash flow in real time. If you’re on the lookout for a dedicated account for your business then Mettle, the new digital business account by NatWest, could be a great option. Mettle accounts are easy to open and completely free of charge.
As a benefit of opening a Mettle account, you’ll gain access to FreeAgent’s accounting software for free. FreeAgent is an easy-to-use tool for managing your business finances. From creating invoices and recording expenses to tracking your time. FreeAgent is packed with features designed especially for small businesses.