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ARTICLE
There’s a lot of information here, so bear with me, but this is important as you need to know what your responsibilities will be. April 2024 may feel like a distant time in the future, but it really isn’t – getting ready for the transition can be done from now.
It will save you a lot of work and worry if you’re ready, and already in the habit of keeping accurate records.
Benefits of MTD for your DJ business
The transition to digital record keeping will feel much easier if you look at the benefits rather than getting fed up that you have to do it. Concentrate on all the efficiencies for your business, including:
more control of business finances
less time spent on managing finances
the ability to track income and expenditure more accurately
So, what difference will MTD make to how you do things?
Actions you will need to take for Making Tax Digital for Income Tax Self-Assessment
Overall, there are five things you’ll need to do:
1. Keep digital records of all business income and expenditure.
2. Sign up for a new MTD for ITSA account with HMRC before 6th April 2024.
3. Update HMRC at least every three months with a summary of income and expenditure using compatible software.
4. At the end of your accounting period, finalise any profit and loss position via an end of period statement (or EOPS as it will be known). This is where you will be able to make any adjustments for allowances and reliefs.
5. The final declaration effectively brings together everything done above into one final declaration that you must submit by 31st January the following year. It’s this final declaration that will confirm to HMRC your tax liability. You will no longer need to submit an annual self-assessment return.
You’ll need to sign up for Making Tax Digital if:
you’re registered for self-assessment
you get income from self-employment or property
your total qualifying income is more than £10,000
Qualifying Income for Making Tax Digital
Qualifying income is your income before you deduct expenses; turnover not profit....
To read the full article, you’ll need to have a physical copy of the magazine which you can sign up for here for 6 issues delivered to your door from just £16!
https://store.promobile.online/products/pro-mobile-magazine-6-issue-1-year-subscription
You’ll also get full interactive access to this and the last year of magazines via the Pro Mobile Magazine App which is available from both the Apple App Store and Android PlayStore
It will save you a lot of work and worry if you’re ready, and already in the habit of keeping accurate records.
Benefits of MTD for your DJ business
The transition to digital record keeping will feel much easier if you look at the benefits rather than getting fed up that you have to do it. Concentrate on all the efficiencies for your business, including:
more control of business finances
less time spent on managing finances
the ability to track income and expenditure more accurately
So, what difference will MTD make to how you do things?
Actions you will need to take for Making Tax Digital for Income Tax Self-Assessment
Overall, there are five things you’ll need to do:
1. Keep digital records of all business income and expenditure.
2. Sign up for a new MTD for ITSA account with HMRC before 6th April 2024.
3. Update HMRC at least every three months with a summary of income and expenditure using compatible software.
4. At the end of your accounting period, finalise any profit and loss position via an end of period statement (or EOPS as it will be known). This is where you will be able to make any adjustments for allowances and reliefs.
5. The final declaration effectively brings together everything done above into one final declaration that you must submit by 31st January the following year. It’s this final declaration that will confirm to HMRC your tax liability. You will no longer need to submit an annual self-assessment return.
You’ll need to sign up for Making Tax Digital if:
you’re registered for self-assessment
you get income from self-employment or property
your total qualifying income is more than £10,000
Qualifying Income for Making Tax Digital
Qualifying income is your income before you deduct expenses; turnover not profit....
To read the full article, you’ll need to have a physical copy of the magazine which you can sign up for here for 6 issues delivered to your door from just £16!
https://store.promobile.online/products/pro-mobile-magazine-6-issue-1-year-subscription
You’ll also get full interactive access to this and the last year of magazines via the Pro Mobile Magazine App which is available from both the Apple App Store and Android PlayStore
The full review can be found in Pro Mobile Issue 117, Pages 26-30.
