Since April 1996, those who were self-employed have had the pleasure of an annual self-assessment tax return. The good news is, this will be ending as of April 2018.
From April 18, every quarter you will be required to make a submission to HMRC telling them of your income and expenditure. After the four quarterly submissions, you will then have to make your final fifth submission with any year-end adjustments as necessary.
You will have access to your own online digital account, which will give you a quarterly tax due figure. You are welcome to make payments towards this tax bill as you go along, but you are not required to do so.
To prepare for this, Cuddles Accountancy are already moving their clients onto Cloud Accounting, and so when April 2018 arrives, they will be ready for the new tax year.
Ben Steele, Senior Manager at Cuddles Accountancy, said: “If we prepare now when the time comes, there is no headache! Our clients will be ahead of the game. We do all the work for our clients but can enable them to be more involved if they wish, and Cloud Accounting gives them a better insight into their finances whenever they want.”
It was recently announced that the Making Tax Digital initiative has been put on hold until after the looming general election. However, this is thought to be temporary and will be added back into the Finance Bill shortly after.
Regardless, Cloud Accounting is the future, and Cuddles Accountancy have partnered with the leading Cloud software providers Xero and Quickbooks Online in bringing this feature to our clients.
So, why wait until you have to do it? Prepare now. It is really simple, affordable, and can improve your efficiency and business, regardless of its size.
5th April has not long passed, so start this new tax year on Cloud Software.
If you wish to know more, feel free to contact Ben Steele at Cuddles Accountancy, where he can talk you through how it works, which solution is best for you, and get you set up in no time.