Making Tax Digital for Income Tax: Quarter 1 down ✅

With Quarter 2 of Making Tax Digital (MTD) for Income Tax approaching, now is a good time to make sure your accounting software is set up correctly and your records are up to date.

Here are a few simple steps that can make a big difference:

📋 Get your software set up correctly

Taking the time to enter property details, link bank accounts, add ownership percentages and set up tracking categories correctly from the outset can save time and avoid issues later.

🏦 Make the most of bank feeds

Linking your bank accounts allows transactions to flow directly into your accounting software, reducing the need for manual data entry.

📂 Keep receipts and documents organised

Use your software's document or receipt features to upload paperwork as you go. This means less time spent searching for documents when you need them.

💳Keep business and personal finances separate

Using a dedicated account for business or property income helps keep your records clear and makes bookkeeping much simpler.

🔄Reconcile regularly

Spending a few minutes each week checking your transactions can help keep everything accurate and prevent a last-minute rush.

A quick reminder:

A quarterly update is not a full set of accounts or a tax return. It is simply a summary of your income and expenses submitted to HMRC. No tax is payable as a result of the quarterly update itself — your final tax position is dealt with through the end-of-year process.

⏰ Quarter 2 is fast approaching.

Once September comes to an end, there are just 37 days to submit your Quarter 2 update.

If you'd like support getting your software set up correctly or want to make Quarter 2 as straightforward as possible, get in touch to find out how we can help.