What is Making Tax Digital?
Making Tax Digital (MTD) is a government-led initiative, designed—in theory—to make tax admin simpler for taxpayers. They started with VAT in 2019 and they’re now moving on to Income Tax.
It marks the end of the annual tax return as we currently know it, and in its simplest form, is a new way of reporting your earnings to HMRC on a more regular basis.
Practically though, it means a lot more work for sole traders—as you’ll now need to submit details of your income and expenses to HMRC four times a year, instead of one.
That’s a lot.
But here at Coconut, we’re dedicated to making the transition as painless as possible, and to supporting self-employed people through this change.
And maybe even making bookkeeping enjoyable along the way!