From April 6th, many self-employed people and landlords will need to follow new HMRC rules - Making Tax Digital for Income Tax.

If your combined income from self-employment and/or property rental was over £50k in the 2024/25 tax year, these MTD rules may impact you, meaning:

• Keeping digital records of income and expenses

• Using MTD-compliant software, like QuickBooks or Xero

• Submitting quarterly updates to HMRC

This might seem complicated, but it’s actually much simpler than it sounds.

Many self-employed people still want an accountant or a bookkeeper to manage everything for them, but you don’t have to have one to be MTD compliant.

If your business is relatively straightforward, you may be perfectly capable of managing your own bookkeeping and quarterly submissions, End of Period Statements (EOPS) and annual final declaration compliantly with the right software on your own.

And I can help, if you’d like me to.

For compliance, there are only a few things you need:

• choose the right accounting software for you and your business

• get it set up correctly

• connect it to HMRC for MTD (so your software and HMRC can talk, essentially)

• learn how to record your income and expenses

• learn how to submit your updates to HMRC

All this can be achieved in an hour or two. Once it’s set up, you’ll know exactly how everything works and can keep on top of it yourself.

One misconception is that accounting software is only for accountants: it isn’t, and MTD-compatible software may be more affordable than you might think.

Many modern systems are also specifically designed with small businesses and sole traders in mind, making them as intuitive as possible.

When set up properly, they can:

• automatically track income and expenses

• connect to your bank account for a live feed of money coming in and money going out

• keep your records organised for HMRC

• submit updates directly from the software to HMRC

When it comes to choosing the software for you, most people I help use either Xero or QuickBooks. Both are HMRC-compliant and both are designed for small businesses.

I’m not affiliated with either, and I’m not trying to sell subscriptions - the goal is simply to help you chose the software that works for you and your business. I like them both equally, but most people have a strong preference for one or the other!

Basic versions cost £10 or less per month, and once everything is set up, they make managing your records really easy.

The £50k threshold is only the first stage on this leg of HMRC’s long-term MTD goals, and they have already announced that the threshold will be lowered to £30k in April next year, then £20k in the April 2028.

If you’re just under the threshold now, you may want to consider getting set up early: starting voluntarily can make the transition much easier when the rules eventually apply to you.

If you want someone to run your bookkeeping and quarterly submissions, that’s absolutely something I can help you with.

But, if you want to handle it yourself, avoiding long-term commitments to a bookkeeper or an accountant, I can help with that too:

• software recommendation and set-up

• HMRC connection to MTD

• basic training on the what-to-do’s and what-not-to-do’s and provide how-to guides if required

• Follow-up a month or so later to see how you’re getting on and answer any questions you may have

These sessions usually take 60 to 90 minutes. Some are quicker, some are longer, but we’ll take as long as we need until you’re confident and comfortable with what you need to do and how to do it.

All that for £95.

Use the contact form below to book yours: please make sure to include your phone number and I’ll give you a call within an hour or two to work out a suitable date/time.