Moving to Digital Bookkeeping & Making Tax Digital
Preparing for Making Tax Digital but don't yet have a digital bookkeeping system in place?
If you're currently keeping paper records, using spreadsheets or don't yet use bookkeeping software, I can help you move to a professional digital bookkeeping system that's ready for HMRC's Making Tax Digital requirements.
Using Xero (or another suitable cloud bookkeeping system where appropriate), I'll create a digital bookkeeping system that's organised correctly from the very beginning, register your business for Making Tax Digital (where required), connect Xero to HMRC and set up Hubdoc so you can securely upload receipts, invoices and other bookkeeping documents.
I'll take care of everything, from setting up your Xero bookkeeping system to registering for Making Tax Digital, so you can feel confident your bookkeeping has been set up correctly from the very beginning.
What is Making Tax Digital?
Making Tax Digital (MTD) is HMRC's move towards digital record keeping and more regular tax reporting.
Instead of keeping manual records and submitting everything once a year, businesses within the MTD rules must keep digital bookkeeping records using compatible software and submit updates to HMRC throughout the year.
Quarterly submission deadlines
Under Making Tax Digital, quarterly updates are normally due by:
6 April – 5 July → Submit by 7 August
6 July – 5 October → Submit by 7 November
6 October – 5 January → Submit by 7 February
6 January – 5 April → Submit by 7 May
At the end of the tax year, you'll also complete a Final Declaration to finalise your tax position.
Who Needs to Register for Making Tax Digital?
Making Tax Digital for Income Tax is being introduced in stages. Whether you'll need to join depends on the qualifying income shown on your most recently submitted Self Assessment tax return, not the income you're currently earning.
If your 2024/25 Self Assessment tax return shows qualifying income of more than £50,000, you'll need to join from April 2026.
If your 2025/26 Self Assessment tax return shows qualifying income of more than £30,000, you'll need to join from April 2027.
If your 2026/27 Self Assessment tax return shows qualifying income of more than £20,000, you'll need to join from April 2028.
Making Tax Digital currently applies to many:
Sole traders
Landlords
Not sure if Making Tax Digital applies to you? I'd be happy to discuss your circumstances.
What You'll Need to Do
Once you are within Making Tax Digital you'll need to:
Keep your bookkeeping records digitally using compatible software.
Maintain accurate bookkeeping records throughout the year.
Submit quarterly updates to HMRC.
Complete your year-end declaration.
Keeping your bookkeeping records up to date throughout the year makes these submissions much easier to manage.
How I Can Help
I'll take care of the entire setup for you, including:
Setting up your Xero bookkeeping system.
Registering your business for Making Tax Digital (where required).
Connecting Xero to HMRC.
Setting up Hubdoc for secure digital receipt, invoice and document uploads.
Organising your digital bookkeeping records from the very beginning.
Once everything has been completed, you'll have a professionally configured digital bookkeeping system that's ready for your bookkeeping and Making Tax Digital compliance.
Pricing – £75
The £75 setup fee includes:
Professional Xero bookkeeping system setup
Hubdoc setup
Making Tax Digital registration (where required)
Connection of Xero to HMRC
This setup is designed as the foundation for my ongoing bookkeeping service, giving your business a professionally configured bookkeeping system that's ready for day-to-day bookkeeping and Making Tax Digital compliance.
The £75 setup fee is designed for clients who are moving onto my ongoing bookkeeping service. It is not intended as a standalone Xero setup or bookkeeping system installation.
Software subscriptions are charged separately.
Clients who use my ongoing bookkeeping service can receive Xero free for the first six months, followed by discounted subscription rates.
Moving from another bookkeeping system?
If you are already using bookkeeping software and would like to move your bookkeeping to Xero as part of my ongoing bookkeeping service, I'd be happy to discuss your requirements.
The time required to migrate an existing bookkeeping system varies from business to business, so migration work is quoted separately where required.
Why Choose TWB Simply Bookkeeping?
HMRC Authorised Agent
30+ years' bookkeeping and finance experience
Xero Bronze Partner
Secure cloud bookkeeping with Hubdoc
Personal one-to-one service
Ongoing bookkeeping and Making Tax Digital support
Ready to Get Started?
Whether you are moving from paper records, spreadsheets or simply want to get your business ready for Making Tax Digital, I'd be happy to help.
If you'd like to prepare your business for Making Tax Digital or discuss moving to cloud bookkeeping, get in touch for a friendly, no-obligation chat.
