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 know it today, and in its simplest form is a new way of reporting your earnings to HMRC on a more regular basis.
Practically, as a sole trader, it means a lot more work 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 it as painless as possible, and to supporting sole traders through this change (maybe even making bookkeeping enjoyable along the way!).