Making Tax Digital

[spruce]

As has been reported, HMRC is changing its tax return platform and expects this to be fully functional by April 2024. Has anyone looked into the accounting software options the Receiver has approved of, please?

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Currently, I use George to keep work records and payments received. I use a spreadsheet for expenses. On the spreadsheet I have formulas to apportion expenses into business and private use. For example, my assessment is the 90% of my fuel used in my van is for business use and the remaining 10% is for private use. So currently, I only claim the 90% as a business expense on my tax return.

I use my personal bank account for payments and since Covid probably bank a limited amount of cash every 2 or 3 months.

Thanks for any opinions.

 

[Iron Giant]

I don't like the idea of this at all, more so for myself who is already digital I don't want to have to be paying out for a digital accounting software plan every month and also have to be adding all my transactions into two different apps as I already use Cleaner Planner hopefully we will just be able to export a file from our current round tracking software and upload it into another one if it comes to that,

I don't like the look of the currently approved apps but sage is the one I know off which is yet to be approved hopefully my accountant will pay for the new app and we will just be able to export files but I have my doubts that's going to be enough, they are just making twice the work for those of us who already digital with extra expenses for software and the submitting of quarterly reports as I'm sure in the past there were talks of charges every quarter., which was lot more expensive

 

[kevinc250]

hi, @spruce, i think i mentioned this to you a while ago in a message but, i use 1tap receipts for my tax records, mine is linked to one of there accountants, although you can go it alone and self assess, it, just gives me peace of mind knowing that the risk of being audited are lower not, that i've anything to hide but i can only imaging the stress involved.
the 1tap receipts is £14.99 a year and works with hmrc, the accountant part is £249.99 per year, for me my accountant logs into my squegee account (yes i trust her that much) she downloads whatever files are applicable and then completes my tax return, tells me how much i have to pay and its all done for me, well worth the money as i have paid less tax over the years using them.

 

[Iron Giant]

hi, @spruce, i think i mentioned this to you a while ago in a message but, i use 1tap receipts for my tax records, mine is linked to one of there accountants, although you can go it alone and self assess, it, just gives me peace of mind knowing that the risk of being audited are lower not, that i've anything to hide but i can only imaging the stress involved.
the 1tap receipts is £14.99 a year and works with hmrc, the accountant part is £249.99 per year, for me my accountant logs into my squegee account (yes i trust her that much) she downloads whatever files are applicable and then completes my tax return, tells me how much i have to pay and its all done for me, well worth the money as i have paid less tax over the years using them.

I had a quick look at 1tap receipts - simple solution to claiming expenses for self employed it looks quite good, do you take a photo of every single invoice for your business?
I don't see an issue with giving your accountant access to Squegee app as they need to know everything anyway,

I have just not thought it really beneficial as I usually print off a profit and loss report from Cleaner planner which has always been enough although allowing access, my accountant could look at things more in-depth to cross-reference expenses on my bank statements and ensure everything I have put through is allowable
I am hoping that my accountant may stump for a digital software program that will have a customer portal for when the changes come in, just last year maybe the year before I have to digitally sign documents once they have prepared my accountants and done my return

 

[spruce]

For me @Iron Giant I now scan my expenses receipts and hyperlink them into my spreadsheet already. Many years ago I met up with the Receiver and I made the spreadsheet to separate the business and private portions of an expense like they wanted. As I've said before, I believe that my personal private van usage accounts for 10% of my vehicle running costs where the personal use of my phone is 50%. The receipt tracker apps I've looked at in the past track the expense as a total.

These MTD apps want you to have a separate business bank account where they can link receipts to bank account entries more easily. I don't have a business account. When I enquired with Natwest many years ago, they wanted £80 a month for what I did banking wise, ie, number of cheques, weekly deposits etc. In those days I used to pay my fuel with cash received so that was never banked.

From the Govt website I see Rhino do an app that allows free quarterly submissions which we have to prepare, but we have to pay £49.99 for the final submission. I have always done my own tax return, so I'm now paying £50 for what I submitted using the program on the Receiver's website. So what I conclude from this is that the Receiver no longer wants the expense of upkeep of its own programs, so wants to save that expense by making us pay for private enterprise to do it.

 

[Jango]

It seems quite complicated, my accountant is ready to retire, this may be when he might finish, when this comes in.
I’m like you @spruce I do everything on spreadsheets. File all my paper receipts and attach.I don’t really want to spend on some fancy app, although I guess they are very good.

 

[Iron Giant]

For me @Iron Giant I now scan my expenses receipts and hyperlink them into my spreadsheet already. Many years ago I met up with the Receiver and I made the spreadsheet to separate the business and private portions of an expense like they wanted. As I've said before, I believe that my personal private van usage accounts for 10% of my vehicle running costs where the personal use of my phone is 50%. The receipt tracker apps I've looked at in the past track the expense as a total.

These MTD apps want you to have a separate business bank account where they can link receipts to bank account entries more easily. I don't have a business account. When I enquired with Natwest many years ago, they wanted £80 a month for what I did banking wise, ie, number of cheques, weekly deposits etc. In those days I used to pay my fuel with cash received so that was never banked.

From the Govt website I see Rhino do an app that allows free quarterly submissions which we have to prepare, but we have to pay £49.99 for the final submission. I have always done my own tax return, so I'm now paying £50 for what I submitted using the program on the Receiver's website. So what I conclude from this is that the Receiver no longer wants the expense of upkeep of its own programs, so wants to save that expense by making us pay for private enterprise to do it.

As for private use of my van, it's about 0% as only go to the shop on the way home from work so technically you could say I've clocked off as the shop is en route home,

I don't want to pay for an app to have to do twice the admin or have to link my bank account either so I am hoping better apps will come along within the next two years

I pay my chartered accountant £378 to do my return and check things over, he gets it handed on a plate to him really as all my invoices and receipts are placed in separate envelopes for each month as well as the profit and loss report.

 

[kevinc250]

I had a quick look at 1tap receipts - simple solution to claiming expenses for self employed it looks quite good, do you take a photo of every single invoice for your business?
I don't see an issue with giving your accountant access to Squegee app as they need to know everything anyway,

I have just not thought it really beneficial as I usually print off a profit and loss report from Cleaner planner which has always been enough although allowing access, my accountant could look at things more in-depth to cross-reference expenses on my bank statements and ensure everything I have put through is allowable
I am hoping that my accountant may stump for a digital software program that will have a customer portal for when the changes come in, just last year maybe the year before I have to digitally sign documents once they have prepared my accountants and done my return

hi mate, yes i take a photo of invoices, i tend to stack them up ie a couple of weeks worth and do them en-mass, those expenses that come in via e-mail are a quick click and forward to my 1 tap address and its done, my van usage is down to fuel invoices rather than a mileage option as i may do only 6,000 miles or so a year so splitting that to work or private(none of my miles is private use) is too much of a headache for me, with squegee you do have that option to input expenses but i kinda feel that the 1tap option is much better or easier for me as i am a bit of a tech dinosaur and like things simple, i must admit i like the people @ 1tap i can get along with them and have a laugh when we do chat, they are real people after all and my accountant eleanor is only at the end of the phone if i do need advice.
if i'm honest, when i first signed up with them and gave them access to my hmrc accounts they spotted the previous years return wasn't correct, (me doing a ken dodd self assesment), they re-did the previous years return for me at no cost, i did have to pay a residual amount to hmrc due to my c oc k up but, it was no big problem.
it works for me as i have very little input on time to keep the accounts correct and above board and we are becoming a ditigal world, spreadsheets and print offs should or will be a thing of the past in the next few years its just the way its going hmrc have made it this way and we all have to adapt to it and move forward.

 

[Iron Giant]

hi mate, yes i take a photo of invoices, i tend to stack them up ie a couple of weeks worth and do them en-mass, those expenses that come in via e-mail are a quick click and forward to my 1 tap address and its done, my van usage is down to fuel invoices rather than a mileage option as i may do only 6,000 miles or so a year so splitting that to work or private(none of my miles is private use) is too much of a headache for me, with squegee you do have that option to input expenses but i kinda feel that the 1tap option is much better or easier for me as i am a bit of a tech dinosaur and like things simple, i must admit i like the people @ 1tap i can get along with them and have a laugh when we do chat, they are real people after all and my accountant eleanor is only at the end of the phone if i do need advice.
if i'm honest, when i first signed up with them and gave them access to my hmrc accounts they spotted the previous years return wasn't correct, (me doing a ken dodd self assesment), they re-did the previous years return for me at no cost, i did have to pay a residual amount to hmrc due to my c oc k up but, it was no big problem.
it works for me as i have very little input on time to keep the accounts correct and above board and we are becoming a ditigal world, spreadsheets and print offs should or will be a thing of the past in the next few years its just the way its going hmrc have made it this way and we all have to adapt to it and move forward.

Many thanks for this, I am having to have a meeting with my accountant at some point soon, so I'll bring up these things and get his thoughts on things about how we can tackle all this digital moving forward, my accountant is spot on and we get along quite well.

 

[ks789]

Not looking forward to it. Im very old fashioned in a lot of ways and dont like keep having to change. I keep all my records written out on paper and kept in files. Its just the way I find easy. I hate computers and still use an old fashioned basic phone, because I dont want the distraction of a smartphone and to keep looking at the damn thing like everyone seems to. I work part time really, but do enough that I would have to use the new system. I get really stressed out by all this change every other day and to be honest I look forward to the day I can jack it in and not think about anything. Might even end up jacking in the windows and just doing part time paye till my work days are over.

 

[spruce]

Not looking forward to it. Im very old fashioned in a lot of ways and dont like keep having to change. I keep all my records written out on paper and kept in files. Its just the way I find easy. I hate computers and still use an old fashioned basic phone, because I dont want the distraction of a smartphone and to keep looking at the damn thing like everyone seems to. I work part time really, but do enough that I would have to use the new system. I get really stressed out by all this change every other day and to be honest I look forward to the day I can jack it in and not think about anything. Might even end up jacking in the windows and just doing part time paye till my work days are over.

It's concerning you feel this way. I'm sorry. I'm not looking forward to this either if they go ahead with it, tbh.

 

[Part Timer]

Not looking forward to it. Im very old fashioned in a lot of ways and dont like keep having to change. I keep all my records written out on paper and kept in files. Its just the way I find easy. I hate computers and still use an old fashioned basic phone, because I dont want the distraction of a smartphone and to keep looking at the damn thing like everyone seems to. I work part time really, but do enough that I would have to use the new system. I get really stressed out by all this change every other day and to be honest I look forward to the day I can jack it in and not think about anything. Might even end up jacking in the windows and just doing part time paye till my work days are over.

It's the same every time things change, us dinosaurs are always woe betide but after a few grumbles and groans we get used to it.

 

[kevinc250]

Not looking forward to it. Im very old fashioned in a lot of ways and dont like keep having to change. I keep all my records written out on paper and kept in files. Its just the way I find easy. I hate computers and still use an old fashioned basic phone, because I dont want the distraction of a smartphone and to keep looking at the damn thing like everyone seems to. I work part time really, but do enough that I would have to use the new system. I get really stressed out by all this change every other day and to be honest I look forward to the day I can jack it in and not think about anything. Might even end up jacking in the windows and just doing part time paye till my work days are over.

i'm not a great fan of new ways of doing things, i remember at work we had this new fangled computer thing to speed up our life-god did i resist it i was working in the glass trade and saw no reason for this new technology but, as time went by we got used to it and it did, speed our work up or made it easier.
i have since embraced this new technology and you know, its not all that bad, it does free up time and makes life easier, i also have an old phone, nothing wrong with that its not stuck to my hand all day as its in the van and i pick it up when i want to, i also use an i-pad for business use as it helps me keep things in order so i don't need to spend ages on a night keeping records, i didn't like it at first like yourself i'm not really that good with change but i admit its the best choice i've ever made.
i come home and all my records are up to date, my accounts would only need a five min session at the weekend, i've more free time and no head ache or putting things off.
if you find that keeping things on paper works for you, thats still ok, how have you submitted tax returns before? if you have done it online then its fine, and still will be fine for many a year, i think its more those that send paper self asessments that need to move over to digital right now.

 

[kevinc250]

It's the same every time things change, us dinosaurs are always woe betide but after a few grumbles and groans we get used to it.

you said it as i was typing the longer reply mate

 

[ks789]

i'm not a great fan of new ways of doing things, i remember at work we had this new fangled computer thing to speed up our life-god did i resist it i was working in the glass trade and saw no reason for this new technology but, as time went by we got used to it and it did, speed our work up or made it easier.
i have since embraced this new technology and you know, its not all that bad, it does free up time and makes life easier, i also have an old phone, nothing wrong with that its not stuck to my hand all day as its in the van and i pick it up when i want to, i also use an i-pad for business use as it helps me keep things in order so i don't need to spend ages on a night keeping records, i didn't like it at first like yourself i'm not really that good with change but i admit its the best choice i've ever made.
i come home and all my records are up to date, my accounts would only need a five min session at the weekend, i've more free time and no head ache or putting things off.
if you find that keeping things on paper works for you, thats still ok, how have you submitted tax returns before? if you have done it online then its fine, and still will be fine for many a year, i think its more those that send paper self asessments that need to move over to digital right now.

Yes mate, manage ok submitting online, ive found that fairly straightforward so far as just basic ins and outs. I do watch utube docs on my tv which have been handy. Like you say, be fine for at least a couple of years. Things do seem to be changing ever faster nowdays though.