Digital Tax
Are you ready for Making Tax Digital?
If you are a VAT registered business (including self-employed persons and landlords with one or more UK properties), you are already required by HMRC to keep your bookkeeping and accounting records digitally, using compatible software and to submit these records electronically to HMRC via you VAT returns.
However Making Tax Digital for Income Tax comes into force on 6 April 2026 and will apply to all sole-traders or landlords registered for self-assessment, with annual business or property income over £50,000 in the preceding 25/26 tax year. You will be notified by HMRC that (unless you meet the exemption criteria), you are required to keep digital records on MTD compatible software and submit electronic information of your business income and expenditure quarterly to HMRC. A final declaration (similar to the full self-assessment tax return, containing details of other income etc) must then be submitted following the year-end, with tax paid as usual.In April 2027 the threshold is further reduced, so that this applies to landlords or self-employed persons with annual business or property income over £30,000. (It is intended this threshold will again be reduced to £20,000 in April 2028).
Many of you will have already received letters from HMRC about this, but if not and you believe you will be affected, it is advisable to get prepared now, rather than leave it until the last minute. Hurst Bookkeeping can help you with this.
What We Do
We love to help our clients tidy up their records and gain an understanding of their finances and make better decisions, safe in the knowledge that all the important deadlines will be complied with and the accounts will be uptogether, ready for the accountant at year-end.
We work with some great local accountants so can put you in touch with them and liaise with the accountants during the year (and at year-end) on your behalf, if required.
We primarily use Xero (Mandy is a Xero Certified Adviser) and can also use Quickbooks and spreadsheets. If you wish to start using Xero we are experienced in moving your records over, so can do this for you.
As well as the general bookkeeping, we can submit your VAT returns, run your payroll and advise on and process CIS invoices/ CIS returns (around two thirds of our clients are in the Construction Industry Scheme). As per above we can also help with Making Tax Digital for Income Tax because HMRC are now allowing multiple agents to act for those affected; allowing bookkeepers to submit the quarterly updates, even if an accountant will be dealing with the final declaration.
We pride ourselves on being friendly, approachable and knowledgeable and our clients love having us at the end of the phone, email or WhatsApp, to help them with their day to day queries and concerns. No question is too silly and nothing gives more job satisfaction than being able to help.
Who We Are
We are fully insured bookkeepers and payroll managers, and are regulated by the ICB, the largest bookkeeping institute in the world, so you can rest assured that we’re knowledgeable, ethical, and up-to-date on all the latest legislation.
We are based in West Moors, Dorset and are able to serve businesses in Dorset and The New Forest. However, as we can use various accounting software packages we can undertake remote work if you are outside the area.