Does anybody know anything about it and how it will affect us?

https://www.att.org.uk/making-tax-digital-frequently-asked-questions

Thanks x

One of my regulars is an accountant who I get a bit of help from. He said that if you earn over £50,000 you will need to get some new software rather than fill out a self assessment. You then record expenses digitally, like taking photos of hotel bills, travel etch. Rather than keep them in a file at home you just keep them like photos in your iCloud. You are supposed to keep copes of ‘customer invoices’ also 

I've been using the software for years in preparation following advice from my accountant. The main difference is bank accounts are directly connected, my bills are paid using credit card or direct debit so I have email receipts and statements on utility accounts etc. I still keep any shop receipts.

Self assessment returns are still required and as I understand will still be required, however some people will be required to submit an automatic report from the software on a quarterly basis. A self assessment return will then be submitted as normal after the end of the tax year. This quarterly report will eventually become the norm for everyone who submits self assessment returns.

Thank You for replying.
Well that will be a bit problematic since I declare as beauty therapist and all of the sudden have all those Airbnb bills.

Would that matter?  To me that new software seems a little bit of a scary prospect.
I understand if they did that for 50k after taxes income. But it’s before taxes which I guess most of us would hit? Seems like it would affect most of us.
I tried opening a business account a while ago but 4 months later Lloyds still didn’t get in contact.
The admin of the job seems to get more and more complicated lately with all the banks limit and banks not wanting SW business.

The threshold is over £50,000 turnover, which is before tax.  From April 2027 it will be £30,000 turnover so I presume it will affect most of those that declare.

Exactly. It’s not the declaring part that bothers me since I am doing that already, it’s the absolute faff of it on top of work and two kids 

That’s good to hear.

Could You roughly give an idea how does the software works?
Since I don’t have business account I always used to pay accommodation with my Amex so I can rack up points. Than obviously paid it out of my account where I deposit my earnings. Will that still be possible?
Is a business account than absolutely necessary? Can I pay personal credit card with business account?
Sorry! I just have so many questions! Feel free to ignore

If you have a decent accountant he will explain it all to you .x

It’s just you have to file every 3 months rather than 6 …

It’s just important to make sure you don’t mix up your normal expenses with business expenses. So use the Amex for business and another credit card for everyday purchases. When I asked the accountant why they were introducing it he just said it was because some people make up expenses in their self assessment. They put £5,000 for travel but might only have receipts for £4,000.

Plus of course many organisations want everything online to 'streamline', less paperwork but this could be very intrusive. Doesn't have to be a business bank account, but will be useful to have a bank account for personal, one for work, credit card for personal, credit card for work. This way you only need to link your 'work' accounts to the software.