90 days self assessment

[Dustydazzler]

My wife was speaking to the accountant today and apparently as of 2022 we will need to submit a tax return every 90 days so they are putting their price up significantly

anyone else heard about this 90 day new rule ?

 

[UNG]

It is all part of the Making Tax Digital (MTD) plan to help the government collect tax from the self employed more regularly. I think it remains to be seen if it is workable without costing businesses a fortune to operate it

 

[Dustydazzler]

It is all part of the Making Tax Digital (MTD) plan to help the government collect tax from the self employed more regularly. I think it remains to be seen if it is workable without costing businesses a fortune to operate it

our accountant is putting their price up nearly 500%

 

[Zerax]

Just run your own accounts... it's very easy to do. I use some free software that fully supports MTD electronic submissions which also covers VAT returns too.

 

[Baddegg]

Can I ask what software you use @Zerax?

 

[suffolkspark]

Also interested in what software you use @Zerax . I use VT cashbook, which is free, but kinda only does half the job.

 

[Gavin John Hyde]

500% then i would find a new accountant.

I pay mine just short of £80 per month inc VAT who does year end accounts, VAT returns and other random things I cant do myself when processing payments.
I use Xero so she can log in remotely and it all joins up in the clouds.
Was using QUickbooks but it was causing issues with my salary and rolling over into a new financial year.
If a sole trader then I see no reason why you cant do your own via some software. there are plenty of good options out there

 

[Zerax]

Can I ask what software you use @Zerax?

It's called Quickfile... but there are several packages out there. It's free for smaller users like me as I'm just a one-man-band and have < 1,000 transactions per year. After that I think it's like £45 for a year... which is still cheap compared to the rest of the market.

 

[Dartlec]

It's called Quickfile... but there are several packages out there. It's free for smaller users like me as I'm just a one-man-band and have < 1,000 transactions per year. After that I think it's like £45 for a year... which is still cheap compared to the rest of the market.

I use Quickfile too - has some nice features for a one man band - with invoicing etc built in, and a lot simpler than Tradify or similar, which I've tried but are just too complicated for sole trader setups imo.

I need the power user option, which is £45+vat per year, so very reasonable...

Only hassle is setting up the tagging etc, and entering jobs and expenses outside of the automated bank feeds or generated invoices ..but that's hassle whatever software you use...

 

[catdog1121]

I wonder what the fines are for late filing... As could be cheaper than paying accountant to do 4 tax returns a year.

 

[mattg4321]

Those of us with ltd companies have had to deal with the making tax digital crap for a couple of years now.

Basically meant you had to purchase software such as QuickBooks or Xero etc. No more doing it on a spreadsheet. Yet another cost to pass on to the customer

 

[Zerax]

Basically meant you had to purchase software such as QuickBooks or Xero etc. No more doing it on a spreadsheet. Yet another cost to pass on to the customer

You could view it as a saving too... I use QuickFile, which is free for me as a 'small user' but would be £45 per year for big ones. Even at full price, the software easily saves me a couple of hours a year... just saying. Even if you just use it for filing VAT returns (takes <1 min) it's a winner !

(I've just looked up the cost of Xero... £30/month... it would need to be very special for me to be paying £360/year !)

 

[snowhead]

I wonder what the fines are for late filing... As could be cheaper than paying accountant to do 4 tax returns a year.

No it won't be cheaper.
You'll have to pay the fine for each failed return.
You'll have to pay HMRC's assessment of your earnings, for each failed return (based on other similar businesses) which will be more than your's would be.
And you'll still have to pay to have your correct assessments done, for each failed return, to get a refund on the overcharge, but not the fine.

 

[Dustydazzler]

don’t see any way round the accountants price rises other than to pass it on to my customers , much like ehen joining a scam you just add £45 on to every notifiable job through the year …