Making Tax Digital (MTD)

At Lighthouse Finance, we have been prepared for the Making Tax Digital movement for years. Since establishing Lighthouse Finance in 2019 our monthly package approach to handling our client's accounts has been our most popular option.

How do our MTD Packages work?

• You take a photo of your receipts and invoices.

• We do all your bookkeeping using licensed software.

• We send you monthly reports with a snapshot of how your business is doing and how much you should be saving away for your tax bill!

• We submit all your tax returns, quarterly updates and VAT returns within the strict deadlines.

• We charge a small monthly fixed rate, payable by direct debit.

Result: You have peace of mind that you won't get a nasty surprise when you receive your tax bill. You know how your business is performing and can forecast future periods. You don't lose countless hours recording financial transactions. You know you are MTD Compliant.

What is Making Tax Digital?

Making Tax Digital (MTD) is a UK government initiative requiring businesses and landlords to maintain digital tax records and submit quarterly updates via HMRC-compatible software. In April 2016 Making Tax Digital for Income Tax Self Assessment is being introduced. Meaning an estimated 860,000 people in the UK have to comply with the new regulations, with that number estimated to reach over 2.9 million in 2 years.

Do I Need To Be MTD Compliant?

If your turnover is over £50,000 a year, yes! However this figure is reducing to £20,000 a year by April 2028. So if your combined self employed & rental turnover is over £1,666 a month, it is mandatory.

Do I Need To Use An Accountant?

No, you need to use MTD-compatible software, but you as the business owner can be responsible for your filings yourself. However, with hours of bookkeeping, a steep learning curve to learn how to use compatible software and 5 updates per year to HMRC with strict deadlines & harsh penalties, we would definitely recommend you do! Take a look at our packages below and please get in contact using our online form or calling 01405 695930 to outsource this responsibility to us.