Making Tax Digital for Manufacturing
The team at Folkes Worton have partnered with all the leading software providers and we can lead the way on advising on which software apps are an affordable ‘Making Tax Digital’ compliant solution appropriate for your sector.
It’s important to choose wisely and ensure the software and apps have been designed to help sole traders with ‘Making Tax Digital for ITSA’. The right solution will help reduce the amount of time spent dealing with financial paperwork, receipts and invoices so you can spend more time growing and developing your businesses.
For engineers the right software apps, having the facility to take photos of receipts when on the move and link to the expense within your chosen software should result in a time-saving and more accurate accounting records. The physical receipts can then be discarded. In addition, with the right solution you should be able to get your chosen software to record paid invoicing and receipts and link to your business bank accounts. This should definitely result in administrative time savings and provide much clearer financial information.
The licencing and support cost can be an issue and will need to be considered for some engineering businesses. A one-year subscription for existing bookkeeping software is often more than £200, and an MTD ITSA system will require a subscription year on year. That’s a lot of money across the working life of an engineering business.
Many self-employed people make only £1,000 per month according to recent research by smallbusiness.co.uk. They’re unlikely to be able to pay £200 a year just to report tax information. We expect there will be some deals and special offers in place with software providers by April 2024 and some banks have already moved into this space.
Why do you need the specialists at Folkes Worton:
- Software companies and app designers won’t generally be able to give you accounting advice and, even if they did, they might not know about the intricacies of how engineers work and contract accounting together with the sector having some very specific rules.
- If you decide to use a spreadsheet to store your digital data, you’ll need to find an MTD-compliant bridging software that can convert your data into an MTD-compatible submission. Alternatively, we can help you can use an accounting software that records and securely stores your tax data before sending it off to HMRC.