Tag Archive for: MTD

Making Tax Digital Records: What Do You Need to Keep?

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Making Tax Digital records sit at the heart of MTD for Income Tax.

If you are within scope, you must maintain digital records of your relevant self-employment or property income and expenses all year. These records supply the information needed for your quarterly updates to HMRC.

But what exactly should you record, what qualifies as a digital record, and how frequently should you update your bookkeeping?

Here is what you need to know.

What Making Tax Digital records do you need to keep?

Making Tax Digital records should include details about your relevant income and expenses related to business or property.

For each transaction, your digital records usually need to specify the amount, date, and the appropriate income or expense category.

Compatible software then uses these records to determine the totals needed for your quarterly Making Tax Digital updates.

Depending on your situation, your Making Tax Digital records might also include:

  • Self-employment sales and other business income
  • Property rental income
  • Business expenses
  • Relevant property expenses
  • Customer invoices
  • Supplier invoices and bills
  • Payments received
  • Refunds and credits
  • Bank transactions
  • Transaction dates
  • Transaction amounts
  • The appropriate income or expense category

The exact information required will vary based on your business and income sources.

What counts as a Making Tax Digital record?

A Making Tax Digital record involves creating and maintaining financial data electronically as part of your MTD bookkeeping process. This is a crucial point.

It does not mean just keeping your usual paperwork during the quarter and entering totals into software at the deadline.

You must incorporate your income and expenses into a digital record-keeping system.

For example, if you receive a £600 payment from a customer, your bookkeeping should record the amount, date, and category digitally. Similarly, if you pay £200 for a business expense, you must also document that transaction digitally.

The goal is to keep records updated continuously, avoiding the need to reconstruct several months of activity right before deadlines.

Why accurate Making Tax Digital records matter

Your quarterly updates depend on the data in your bookkeeping software.

If the records are inaccurate, the resulting information will also be flawed.

For example, a customer payment might be listed twice because it was entered manually and imported via a bank feed. Or, some expenses may not be recorded yet. The software can only sum totals based on the data it contains.

That’s why, even with automated bookkeeping features, Making Tax Digital records still require regular review.

Remember, digital tools do not automatically guarantee accuracy.

Do you still need to keep receipts and invoices?

Yes. Making Tax Digital changes the way financial records are maintained, but your broader obligation to keep supporting documents remains.

Invoices, receipts, bank statements, and other records still serve as evidence for transactions in your books. Digital receipt capture can simplify this process.

Instead of storing paper receipts in a drawer, you can photograph or scan them and save them with the related transaction in your bookkeeping system.

This makes it easier to locate information later if you or your bookkeeper need to verify a transaction.

Do you send every receipt to HMRC?

No. Your Making Tax Digital quarterly submission typically doesn’t require you to upload each receipt and invoice separately to HMRC.

Instead, your compatible software uses your digital records to sum up your income and expenses. You then submit these totals as part of your quarterly update.

Nevertheless, receiving these totals doesn’t diminish the importance of the underlying records.

Accurate bookkeeping is still essential because your figures must be based on precise records.

Making Tax Digital records for sole traders

If you are a sole trader under Making Tax Digital for Income Tax, your digital records will show your self-employed business’s financial activity.

For example, imagine running a plumbing business. In a month, you complete customer jobs, purchase materials, pay for fuel, receive payments from customers, and pay a monthly software fee.

Record these transactions in your digital bookkeeping software. Recording them regularly makes preparing for your quarterly updates much easier.

However, if you wait until the deadline, you might have to sift through months of bank transactions, receipts, and invoices in a short time.

Making Tax Digital records for landlords

Landlords using MTD must also maintain digital records of their property income and expenses.

This includes rental income and related costs for their property business.

If you have both self-employment and property income, staying organised with your bookkeeping is especially crucial.

Properly distinguishing between different activities in your digital records ensures accurate reporting under Making Tax Digital.

What if you have several properties?

You might own multiple rental properties but only run one UK property business for MTD record-keeping.

However, this doesn’t mean you should neglect maintaining detailed records to track your income and expenses for each property.

Clear records help you understand your financial activity and provide your accountant with the information they need when required.

Your bookkeeper can help you systematically organise these transactions within your bookkeeping system.

How often should you update your Making Tax Digital records?

The quarterly deadline should not be the point when you start your bookkeeping.

Making Tax Digital works best when records are kept consistently throughout the quarter.

For many businesses, doing monthly bookkeeping creates a manageable routine.

Instead of waiting three months, you regularly log transactions, reconcile bank statements, and address missing details.

By the time your quarterly review arrives, your bookkeeping should mostly be ready for inspection.

This also allows more time to fix any issues. Finding a missing invoice a few weeks after a transaction is generally easier than locating it months later.

What happens if you make a mistake?

Since bookkeeping errors are frequent, outsourcing a professional like Rosemary Bookkeeping is crucial.

You might record transactions twice, input the wrong amount, or assign a transaction to the incorrect category.

The key is to correct these mistakes as soon as you find them.

Regularly checking your Making Tax Digital records simplifies this process.

Bank reconciliation is especially helpful because it compares your bookkeeping records with your actual bank transactions. If there are missing entries or duplicates, reconciliation can highlight them.

Can you use spreadsheets for Making Tax Digital records?

Spreadsheets can be part of a Making Tax Digital process in some cases.

However, your setup must comply with HMRC’s digital record-keeping and linking rules. If data is transferred between different software, it might need to be through a proper digital link rather than manual copying.

This can make a seemingly simple spreadsheet process more complex.

If you use spreadsheets now, it’s advisable to verify whether your process will function correctly under MTD before your upcoming reporting deadline.

How do Making Tax Digital records become a quarterly update?

Your compatible software uses recorded digital data throughout the tax year to calculate quarterly figures.

For standard quarterly periods, key deadlines fall on August 7th, November 7th, February 7th, and May 7th. The software manages the submission process, while your bookkeeping provides the underlying information.

This distinction is important. Simply buying compatible software doesn’t guarantee your records are accurate or complete; you still need to maintain the data.

Are your Making Tax Digital records actually up to date?

Before your next quarterly deadline, reflect on these key questions:

  • Have you documented all your income?
  • Have you entered all your business or property expenses?
  • Are there any unfamiliar transactions in your bank feed?
  • Have you completed the bank reconciliation?
  • Can you locate the receipts and invoices supporting your records?
  • Are there any months of bookkeeping that are still unfinished?

If you can’t answer these questions confidently, you likely need to do some work before your next MTD update.

Why regular bookkeeping matters for MTD

Making Tax Digital emphasises consistent record-keeping, making it harder to overlook.

The quarterly reporting timeline requires ongoing attention to your bookkeeping all year.

Keeping your Making Tax Digital records up to date can minimise last-minute work, catch errors earlier, and simplify meeting each quarterly deadline.

Additionally, it provides a clearer overview of your business’s financial activity.

Rosemary Bookkeeping can help with your Making Tax Digital records

Knowing what records you need for Making Tax Digital is just the first step.

These records must also remain accurate, well-organised, and up to date.

Your local Rosemary Bookkeeper can help maintain your digital records, track income and expenses, reconcile accounts, spot missing information, and prepare your bookkeeping ahead of each MTD quarterly update.

Instead of viewing Making Tax Digital as four separate deadlines, ongoing bookkeeping helps you stay prepared year-round.

If you need help getting your Making Tax Digital records in order, find your nearest Rosemary Bookkeeper today.

A Bookkeeper’s Role in Making Tax Digital

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A bookkeeper’s role in Making Tax Digital is to ensure these records are accurate, organised, and up to date, enabling reliable financial inputs for each quarterly update.

Making Tax Digital for Income Tax requires in-scope sole traders and landlords to maintain digital records and report data to HMRC regularly.

From tracking income and expenses to reconciling accounts and preparing the necessary reports, consistent bookkeeping helps simplify managing Making Tax Digital.

What is a bookkeeper’s role in Making Tax Digital?

A bookkeeper’s role in Making Tax Digital involves managing the financial records that underpin your MTD obligations.

They can assist you with:

  • Record income and expenses accurately
  • Maintain digital bookkeeping records
  • Reconcile your bank accounts
  • Check transactions for errors
  • Identify missing or duplicate entries
  • Keep your bookkeeping up to date throughout each quarter
  • Prepare records for MTD quarterly updates
  • Work alongside your accountant where required

While Making Tax Digital could change how information is submitted to HMRC, accurate bookkeeping remains fundamental to the process.

Making Tax Digital starts with accurate bookkeeping

It’s simple to concentrate on meeting the four quarterly MTD deadlines.

But these updates rely heavily on data collected over the past three months.

If your bookkeeping is incomplete, inaccurate, or months behind, completing each quarterly report becomes significantly more challenging.

For instance, if your software indicates £18,500 in income for a quarter, but two customer payments are recorded twice, and several expenses are missing, the records won’t accurately represent your business activities.

A bookkeeper can review the transactions and help spot issues before the next MTD deadline.

Keeping your digital records up to date

Making Tax Digital for Income Tax requires digital record-keeping.

For a sole trader, this can include:

  • Sales and other business income
  • Business expenses
  • Customer invoices
  • Supplier costs
  • Payments received
  • Bank transactions

For landlords, records should include:

  • Property income
  • Pertinent expenses.

A crucial aspect of a bookkeeper’s role in Making Tax Digital is to keep these records updated consistently, preventing a backlog of months of transactions.

This approach integrates quarterly reporting seamlessly into your regular bookkeeping activities.

Checking transactions, not simply recording them

Modern bookkeeping software can automate much of the data entry process.

Bank feeds enable automatic transaction imports, while software can suggest appropriate categories.

Receipts can be digitised and stored electronically. However, automation alone does not ensure accuracy.

For instance, your software might automatically assign a £750 transaction to a category based on past purchases from the same supplier.

That does not necessarily mean the category is correct.

A bookkeeper can help:

  • Review automated transaction categories
  • Check unusual payments
  • Investigate missing information
  • Identify duplicate entries
  • Correct bookkeeping errors
  • Ask for clarification when a transaction is unclear

Technology can accelerate bookkeeping, but human oversight remains essential.

Reconciling your bank accounts

Bank reconciliation compares the transactions recorded in your bookkeeping software with those that appear in your bank account.

This can uncover:

  • Missing payments
  • Duplicate transactions
  • Unmatched customer invoices
  • Incorrect amounts
  • Payments allocated to the wrong invoice
  • Transactions that have not been recorded

Regular reconciliation ensures that your digital records accurately represent your business activities, which is especially crucial when these records are used for Making Tax Digital.

Preparing for quarterly MTD updates

Making Tax Digital for Income Tax requires quarterly updates throughout the tax year.

For those who entered MTD from 6 April 2026, the standard quarterly deadlines are:

  • 7 August
  • 7 November
  • 7 February
  • 7 May

The bookkeeper’s role in Making Tax Digital is particularly important between deadlines.

Instead of waiting for a quarterly update, your bookkeeper can continuously maintain your records throughout each three-month cycle.

As a result, much of the bookkeeping is already done by the time the next deadline approaches.

Can a bookkeeper submit your MTD quarterly updates?

A bookkeeper might assist with your quarterly MTD updates, depending on their services and the necessary HMRC authorisation.

HMRC permits multiple agents to support someone using Making Tax Digital.

For instance, a bookkeeper may keep your records and help with quarterly updates, while your accountant handles broader tax issues and the final tax return. Y

our bookkeeper does not need to replace your accountant; they can work together.

Bookkeeper vs accountant under Making Tax Digital

Making Tax Digital can make the relationship between your bookkeeper and your accountant even more important.

Your bookkeeper may help with:

  • Recording day-to-day transactions
  • Maintaining digital records
  • Bank reconciliation
  • Checking bookkeeping accuracy
  • Managing invoices and payments
  • Preparing records for quarterly updates
  • Regular bookkeeping throughout the year

Your accountant may help with:

  • Tax adjustments
  • Allowances
  • Tax calculations
  • Other taxable income
  • Tax planning
  • Final tax reporting

Accurate bookkeeping gives your accountant reliable information to work with.

What happens between MTD quarterly updates?

Submitting a quarterly update doesn’t mean you can pause your bookkeeping for three more months.

The next quarter begins immediately.

Your business continues to:

  • Make sales
  • Receive payments
  • Pay suppliers
  • Incur expenses
  • Send invoices
  • Receive bills

All of these transactions still require recording.

Regular bookkeeping distributes the workload throughout the quarter and lowers the last-minute burden before deadlines.

What if your bookkeeping has fallen behind?

If your bookkeeping is overdue, a bookkeeper can assist in updating your records.

You may need to:

  • Find missing invoices and receipts
  • Record outstanding transactions
  • Reconcile your bank accounts
  • Correct errors
  • Review income and expenses
  • Move records into suitable digital software
  • Prepare for your next MTD update

Delaying bookkeeping until the next deadline doesn’t lessen the workload; it simply provides less time to complete it.

Why regular bookkeeping works well with Making Tax Digital

Making Tax Digital promotes more consistent financial record-keeping.

Doing bookkeeping monthly can help detect problems early, before each quarter ends, such as:

  • Missing invoices
  • Outstanding customer payments
  • Duplicate transactions
  • Incorrect categories
  • Missing expenses
  • Unusual transactions
  • Bank reconciliation differences

This is a crucial aspect of a bookkeeper’s role in Making Tax Digital.

Their presence isn’t limited to when an MTD deadline approaches; they can help keep records up to date throughout the year.

Why choose Rosemary Bookkeeping for Making Tax Digital?

Making Tax Digital relies on accurate, current digital records. Rosemary Bookkeeping can assist with this.

Your local Rosemary Bookkeeper can support you with:

  • Regular digital bookkeeping
  • Recording income and expenses
  • Bank reconciliation
  • Maintaining accurate financial records
  • Catching up overdue bookkeeping
  • Bookkeeping software
  • Preparing records for MTD quarterly updates
  • Working alongside your accountant

A bookkeeper’s role in Making Tax Digital is to ensure that the underlying data for your reports is accurately maintained.

While software can submit the figures, solid bookkeeping ensures those figures come from accurate records.

If Making Tax Digital affects you, or if you’re preparing to start using MTD as your income approaches the thresholds, it’s now essential to incorporate regular bookkeeping into your routine.

Find your nearest Rosemary Bookkeeper today.

It’s a Legal Requirement to Be MTD Registered: Are You?

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If you should be MTD registered and haven’t yet, it’s urgent to do so now—it’s no longer just a pending task.

Since 6 April 2026, sole traders and landlords below the Making Tax Digital for Income Tax threshold must use MTD.

HMRC has confirmed that starting September 2026, they will automatically register individuals who should be using the system but haven’t registered.

The first quarterly deadline has already passed. If you are already MTD registered, this is the perfect moment to verify your registration status.

Do you legally need to be MTD registered?

If you meet the Making Tax Digital for Income Tax criteria, the answer is yes.

Starting from 6 April 2026, you must use MTD if you’re an individual registered for Self Assessment, earn income from self-employment or property, and your qualifying income exceeds £50,000 for the 2024/25 tax year.

If this applies to you, you should already be registered for MTD and using compatible software to maintain digital records and report to HMRC.

This isn’t a voluntary change in bookkeeping. HMRC states that Making Tax Digital for Income Tax is a legal obligation for those who meet the relevant thresholds.

What does being MTD registered actually mean?

Being MTD registered is just the beginning.

Once Making Tax Digital (MTD) applies to you, you must use approved software to:

  • Record your self-employment and property income and expenses digitally
  • Submit quarterly updates to HMRC
  • Keep your records current throughout the year
  • File your tax return using compatible software
  • Pay any owed tax by the deadline.

Your software must also be HMRC-authorised and connected.

Being MTD registered isn’t just about filling out an online form, and your bookkeeping must also be prepared.

Not MTD registered yet? HMRC may register you

The situation becomes more urgent here.

HMRC announced on 24 August 2026 that starting in September, it will register individuals who should have been using Making Tax Digital for the 2026/27 tax year but haven’t registered yet.

HMRC will identify these individuals based on existing data showing they had qualifying income exceeding £50,000 for the 2024/25 tax year.

This process will occur in phases over the coming months, with HMRC reaching out to affected people once they are signed up.

If you know you should already be registered for MTD, waiting for HMRC to do it for you won’t solve the issue. You may still need to complete bookkeeping and quarterly updates to catch up.

HMRC registered you automatically. Are you compliant now?

Getting signed up with HMRC doesn’t mean your MTD duties are automatically done.

You still need compatible software, digital records, and to connect your system to HMRC for quarterly updates.

HMRC confirms they sign up users mainly to help them catch up on missed quarterly updates. This is an important point.

Registering for MTD is only the first step; true MTD compliance depends on the bookkeeping process.

The first MTD deadline has already passed

The initial Making Tax Digital quarterly update for the 2026/27 tax year was due on 7 August 2026.

The upcoming deadlines are:

  • 7 November 2026
  • 7 February 2027
  • 7 May 2027.

If you were required to adopt Making Tax Digital from April 2026, skipping the August update and waiting until November isn’t an option.

HMRC states that quarterly updates must be submitted prior to filing your tax return.

If you’re already registered for MTD and missed the first update, taking action now allows you to update your records before the next deadline.

What if you did not receive an HMRC letter?

Don’t assume MTD doesn’t apply to you.

Your obligation depends on your specific situation and qualifying income, not on whether you received a reminder from HMRC.

Although HMRC has contacted individuals it believes are affected, it’s still important to verify your own circumstances.

If your qualifying income for 2024/25 exceeded £50,000 and you meet other criteria, check whether you need to register for MTD.

What is qualifying income for MTD?

A common source of confusion is the £50,000 threshold, which is based on qualifying income rather than profit after expenses.

For Making Tax Digital, qualifying income includes your gross income from self-employment and property before deducting expenses.

If you have multiple sources of qualifying income, combine them.

For example, if you earn £39,000 from self-employment and £14,000 from rental income, your total qualifying income is £53,000. Focusing only on your £39,000 self-employed income might lead you to mistakenly think you’re below the threshold.

The MTD threshold is dropping

You might not need MTD registration now, but this could change soon.

Making Tax Digital is being implemented gradually.

  • If your qualifying income exceeded £50,000 in 2024/25, you started using MTD from 6 April 2026.
  • For incomes over £30,000 in 2025/26, MTD will be required from 6 April 2027.
  • If your income surpasses £20,000 in 2026/27, you’ll need to comply from 6 April 2028.

Consequently, many more sole traders and landlords will need to register for MTD over the next two years. Delaying registration until April of the year you need to comply could mean updating your bookkeeping and adapting to new reporting rules at the same time.

What happens if you miss an MTD deadline?

The first year offers a concession, but it’s crucial to understand its implications.

HMRC won’t assign penalty points for late quarterly updates during the 2026/27 tax year.

However, this doesn’t mean you can neglect quarterly filings. You still need to submit these updates before filing your tax return, and you may still incur penalties if your return or tax payment is late. Starting from subsequent years, late quarterly updates will be subject to the points-based penalty system.

Accumulating four penalty points can lead HMRC to issue a £200 fine, with additional £200 penalties for further missed deadlines while at the threshold.

Therefore, the lack of first-year quarterly penalty points presents an opportunity to establish your process correctly. Nonetheless, this is not an exemption from Making Tax Digital.

Already MTD registered? Your bookkeeping still matters

Registering for MTD doesn’t ensure your records are perfect.

Your quarterly updates rely on the digital data in your software. Incomplete expenses, missing income, duplicate transactions, and unreconciled accounts can still cause issues.

That’s why Making Tax Digital should be viewed as an ongoing bookkeeping process, not just four separate deadlines. Keeping your records up to date makes each quarterly update simpler.

Not MTD registered and already behind?

Ignoring it will not reduce the amount of work you need to do.

If you should have started MTD in April, you may now need to:

  • Check whether Making Tax Digital applies to you
  • Get MTD-compatible software
  • Complete the registration process if HMRC has not already registered you
  • Create or bring your digital records up to date
  • Record income and expenses from the relevant period
  • Reconcile your bookkeeping
  • Complete any outstanding quarterly update
  • Prepare for the next deadline on 7 November 2026

Starting now gives you far more time to deal with gaps or errors than waiting until November.

Rosemary Bookkeeping can help you get MTD ready

If you need to be MTD registered, maintaining good bookkeeping is essential for staying compliant.

Your local Rosemary Bookkeeper can help you understand bookkeeping requirements, transition your records to a suitable digital system, and keep your financial information current year-round.

We can support you with:

  • Digital bookkeeping
  • Recording income and expenses accurately
  • Reconciling your accounts
  • Catching up on overdue bookkeeping
  • Choosing suitable bookkeeping software
  • Preparing your records for MTD quarterly updates
  • Keeping your bookkeeping ready for future deadlines

Since HMRC is now enrolling people who should already be using Making Tax Digital, delaying the process is harder to justify.

If you are required to register for MTD, it’s better to do so now rather than wait for another deadline or an HMRC notification.

Find your nearest Rosemary Bookkeeper today.

Back to Basics: What is Making Tax Digital?

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Making Tax Digital has changed the way many sole traders and landlords keep financial records and report information to HMRC.

If you have heard about MTD but are still unsure what it actually means for your business, this Back to Basics guide covers the essentials.

What is Making Tax Digital?

Making Tax Digital (MTD) is a system HMRC implemented to transition tax record-keeping and reporting into a digital format.

For individuals required to comply with Making Tax Digital for Income Tax, they must maintain digital records of their self-employment or property income and expenses.

They must use compatible software to send quarterly updates to HMRC and submit their tax return through this software by the end of the tax year.

MTD has already been established for VAT, and since April 6, 2026, it has also become mandatory for the first group of sole traders and landlords under MTD for Income Tax.

Who needs to comply with Making Tax Digital?

Making Tax Digital for Income Tax is being implemented based on qualifying income.

You must comply with MTD if you’re registered for Self Assessment, earn income from self-employment or property, and your qualifying income surpasses the threshold for that year.

The current schedule is as follows:

From 6 April 2026

You should already be using Making Tax Digital if your qualifying income was more than £50,000 in the 2024/25 tax year.

From 6 April 2027

You will need to use Making Tax Digital if your qualifying income was more than £30,000 in the 2025/26 tax year.

From 6 April 2028

You will need to use Making Tax Digital if your qualifying income was more than £20,000 in the 2026/27 tax year.

Partnerships are anticipated to be included in Making Tax Digital for Income Tax in the future, although HMRC has not yet provided a confirmed timetable.

What does Making Tax Digital mean in practice?

Making Tax Digital transforms bookkeeping from a task mostly handled around the Self Assessment deadline into a more consistent, ongoing process.

If MTD for Income Tax applies to you, you need to:

  • Keep digital records of your business or property income and expenses.
  • Use software that works with Making Tax Digital for Income Tax.
  • Send quarterly updates to HMRC.
  • Keep your bookkeeping up to date throughout the year.
  • Submit your tax return through compatible software after the tax year ends.

Your quarterly updates are summaries based on the digital records stored in your software.

This highlights the importance of regular bookkeeping.

Waiting until the deadline to compile receipts, invoices, and transactions from past months can make it much more challenging to meet your MTD obligations than it needs to be.

What does qualifying income mean?

Understanding whether Making Tax Digital applies to you depends on your qualifying income.

This income includes your total gross earnings from self-employment and property before deducting expenses and tax.

If you have multiple sources, consider them together.

For example, if you earn £38,000 from self-employment and £15,000 from rental income, your total qualifying income is £53,000.

The key factor is the combined qualifying income, not each source individually.

What are the Making Tax Digital quarterly deadlines?

For those who entered Making Tax Digital on 6 April 2026, the quarterly deadlines are:

  • 7th August 2026
  • 7th November 2026
  • 7th February 2027
  • 7th May 2027

The initial deadline of 7 August 2026 has now passed, and the next Making Tax Digital (MTD) deadline is 7 November 2026.

If you were supposed to start MTD in April but missed the first quarterly update, do not wait until November; HMRC still expects that overdue update.

After completing your quarterly updates, you will need to submit your tax return, which for the 2026/27 tax year is due by 31 January 2028. Remember, quarterly updates do not replace the annual tax return.

Why do you need to be MTD compliant?

If Making Tax Digital applies to you, following the rules is a legal obligation.

However, compliance requires more than just submitting reports four times a year.

Your bookkeeping must reliably support these submissions by accurately recording your income and expenses, keeping digital records current, and ensuring your software contains precise data.

Submitting incorrect information more often doesn’t improve accuracy. That’s why establishing the correct bookkeeping process is essential.

What happens if you miss an MTD deadline?

HMRC has added some flexibility for the first year of Making Tax Digital for Income Tax.

For the 2026/27 tax year, HMRC won’t issue penalties for late quarterly updates.

Nonetheless, submitting quarterly updates remains mandatory, and you must complete any overdue updates before filing your tax return.

Penalties can still apply for late tax submissions and payments.

After the initial year, the standard points-based penalty system for late updates comes into effect. Four points can result in a £200 fine, and additional missed deadlines at the threshold can trigger extra penalties of the same amount.

Therefore, the first year is best used to develop a consistent bookkeeping routine rather than assuming no penalty points will be issued.

What does keeping digital records actually mean?

Making Tax Digital requires keeping digital records of your relevant business income and expenses using compatible software.

These records may include:

  • Income received
  • Business expenses
  • Invoices
  • Receipts
  • Bank transactions
  • Property income and costs when applicable.

The goal is to create a digital record that your MTD software can use to generate the figures needed for your quarterly updates.

Digital record-keeping isn’t just about transferring paper records and inputting totals into HMRC every three months; your bookkeeping must be integrated into this digital process.

What software can you use for Making Tax Digital?

HMRC does not offer its own Making Tax Digital for Income Tax software.

Instead, you must choose commercial software recognised by HMRC.

You can use the online software finder to verify which products fit your needs. Recognised providers offering Making Tax Digital for Income Tax solutions include well-known names:

  • Xero
  • QuickBooks
  • Sage
  • FreeAgent

This is not a complete list.

HMRC does not favour any specific software provider.

Instead, HMRC advises using its software finder to ensure your selected software supports your income sources and needs.

This is especially important because various software options offer different features.

The ideal software isn’t always the one with the most functions, but the one that fits your business and how you and your bookkeeper handle records.

Can you still use spreadsheets for Making Tax Digital?

Potentially, yes.

Using Making Tax Digital doesn’t mean you must abandon spreadsheets.

HMRC states that users can continue to use spreadsheets, but they may need compatible bridging software to transfer data from the spreadsheet for MTD submission.

You still need to comply with digital record-keeping requirements.

Before sticking with your current spreadsheet system, it’s advisable to assess whether it will simplify or complicate your MTD process.

Do you need to sign up for Making Tax Digital?

Yes, if Making Tax Digital for Income Tax is mandatory for you, you must complete the MTD registration process.

Simply being registered for Self Assessment does not automatically set up everything for MTD.

HMRC recommends that affected taxpayers verify whether MTD applies, obtain compatible software, and sign up for Making Tax Digital for Income Tax before using the system.

Your software must also be connected to HMRC.

Is anyone exempt from Making Tax Digital?

Certain individuals can request an exemption from Making Tax Digital.

HMRC acknowledges situations where a person might be digitally excluded, such as due to age, disability, location, or other valid reasons that make digital tools impractical or unreasonable for them.

An exemption is not granted solely because someone prefers to keep paper records. If you think you might qualify, it’s advisable to review HMRC’s latest exemption guidance before concluding that MTD does not apply to you.

Why choose Rosemary Bookkeeping for Making Tax Digital?

Making Tax Digital emphasises the importance of consistent bookkeeping for compliance.

Purchasing MTD software is just one step; the accuracy and currency of the data entered are equally vital.

Your local Rosemary Bookkeeper can assist with the practical aspects of Making Tax Digital, such as maintaining digital records, tracking income and expenses, reconciling accounts, and preparing for quarterly deadlines.

We can also help you select appropriate bookkeeping software based on your needs and simplify the transition to digital record-keeping.

Rather than letting transactions pile up until the next MTD deadline, regular professional bookkeeping keeps your records organised year-round. This approach integrates each quarterly update into your routine, making it less of a stressful, last-minute task.

Making Tax Digital starts with good bookkeeping

Making Tax Digital may involve digital processes, but its core principle remains unchanged: accurate record-keeping is essential.

Software can store data and relay updates to HMRC, but the quality of your bookkeeping directly influences the accuracy of the information submitted.

If Making Tax Digital already applies to you, or you’ll be affected when thresholds are reached in 2027 or 2028, now is the perfect time to ensure your bookkeeping is prepared.

Find your nearest Rosemary Bookkeeper today.

HMRC Could Sign You Up for Making Tax Digital If You Haven’t Done It Yourself

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If you were required to use Making Tax Digital for Income Tax from April 2026 but haven’t signed up, HMRC is taking steps and may sign you up for Making Tax Digital if you haven’t registered already.

Making Tax Digital became a legal requirement from 6 April 2026 for sole traders and landlords with qualifying income over £50,000. The first quarterly update was due by 7 August 2026.

If you missed it, ignoring MTD is not a good option.

What is happening?

HMRC has been contacting sole traders and landlords whose records indicate they should be using Making Tax Digital.

If you haven’t already taken the necessary steps, HMRC is moving forward with bringing eligible taxpayers into MTD. When you receive communication from HMRC regarding MTD, make sure to read it carefully and verify what actions are required of you.

Being integrated into the system doesn’t finalise everything. You still need to verify your details, use compatible software, maintain digital records, and submit quarterly updates. HMRC states that compatible software must be authorised and connected to HMRC before it can be used for Making Tax Digital (MTD) filings.

What if you missed the first MTD deadline?

The first quarterly update deadline was 7 August 2026.

If you were required to use MTD and did not submit your update, you should update your records and submit them rather than waiting for the next deadline.

There is some breathing room in the first year. HMRC has confirmed that no penalty points will be issued for late quarterly updates during the first year of MTD for Income Tax.

However, this does not mean MTD is optional.

You must still comply if you meet the criteria. Penalties for late Self Assessment submissions and tax payments remain in effect. Starting from the second year of MTD for Income Tax, a points-based system will be used for missed quarterly deadlines.

What should you do now?

If you think MTD applies to you, check your position now.

You should make sure you:

  • Are correctly signed up for Making Tax Digital for Income Tax.
  • Have compatible software in place and connected to HMRC.
  • Keep digital records of your self-employment or property income and expenses.
  • Submit any quarterly updates that you have missed.
  • Keep updating your records so you’re ready for your next quarterly submission.

You can access Making Tax Digital for Income Tax through your existing HMRC online account once you are signed up.

What if you haven’t received anything from HMRC?

Don’t assume that means MTD does not apply to you.

For the 2026/27 tax year, MTD applies if you’re registered for Self Assessment, earn income from self-employment or property, and your qualifying income exceeds £50,000. Qualifying income includes your gross earnings from self-employment and property, prior to deducting expenses.

If you meet those requirements, HMRC says you should sign up now.

Get back on track with Rosemary Bookkeeping

If you missed the first MTD deadline, haven’t signed up, or aren’t sure what you should be doing, now is the time to sort it.

The first-year soft landing lets you organise your records and get comfortable with quarterly reporting before penalty points for late updates start to accrue.

Rosemary Bookkeeping can help you understand your MTD obligations, maintain your digital records and keep your bookkeeping organised throughout the year.

Contact your local Rosemary Bookkeeper to get your MTD bookkeeping back on track.

Useful official guidance: Making Tax Digital for Income Tax on GOV.UK and HMRC guidance on signing up for MTD.

Why I Took the Leap and Started My Own Rosemary Bookkeeping Business in Shrewsbury

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Starting my own Rosemary Bookkeeping business in Shrewsbury has been one of the biggest and most meaningful decisions I have made. Like many business owners, I reached a point where I wanted to build something with purpose, something that would allow me to use my skills to make a practical difference to other people running businesses of their own.

People often assume bookkeeping is purely about figures, spreadsheets and deadlines. Of course, accuracy matters. Compliance matters. Meeting HMRC requirements matters. But for me, bookkeeping is really about helping people feel more in control. Behind every set of accounts is a person trying to make decisions, manage pressure, support customers, pay bills, plan ahead and create stability for themselves and their team.

That is why I chose Rosemary Bookkeeping. I wanted to be part of a recognized bookkeeping brand while still offering the personal, local support that business owners value. Launching in Shrewsbury gives me the opportunity to work closely with sole traders, landlords, limited companies and growing SMEs across the area, getting to know what matters to them and providing support that fits around the way they work.

As a new business owner myself, I understand that the early stages can feel exciting and overwhelming at the same time. There are decisions to make, processes to build, relationships to develop and plans to put into action. It has reminded me that business ownership can be incredibly rewarding, but it is also demanding. That experience helps me relate to the clients I support, because I know how valuable it is to have reliable people around you.

One of the biggest lessons I have learned already is that no business owner can do everything well on their own. The strongest businesses build trusted relationships with specialists who help them focus on what they do best. A good bookkeeper can give you back time, improve financial visibility and reduce the worry that comes from not knowing whether your records are up to date.

Many business owners leave bookkeeping until evenings, weekends or the end of the tax year. It is understandable, especially when customers and day-to-day operations come first. But when records are not kept up to date, it becomes harder to understand cash flow, plan for tax, prepare for VAT, manage payroll or make confident decisions. Regular bookkeeping turns financial administration from a source of stress into a useful business tool.

My aim with Rosemary Bookkeeping Shrewsbury is to provide practical, friendly and professional support that helps local businesses feel organised and confident. Whether you are just starting out, growing steadily or trying to regain control of your paperwork, the right bookkeeping support can make running your business feel clearer and less stressful.

This blog series will follow my journey as I build my business, but it is also written for other business owners. Each month, I will share something I have learned and connect it to the challenges many local businesses face. I hope it becomes a useful, honest and relatable resource for anyone trying to build a successful business in Shrewsbury and the surrounding areas.

Do I need a local bookkeeper in Shrewsbury?

A local bookkeeper can provide convenient, personal support while helping you keep records organised, accurate and up to date.

Can Rosemary Bookkeeping Shrewsbury help with Making Tax Digital?

Yes. Rosemary Bookkeeping Shrewsbury can help businesses and landlords organise digital records and prepare for current and future Making Tax Digital requirements.

How do I know if I need bookkeeping support?

If bookkeeping is taking up too much time, your records are behind, or you are unsure whether your figures are accurate, it is a good time to ask for support.

If you have any questions, you want to cross-check any information you already have or are looking for a trusted bookkeeper in Shrewsbury, I would love to hear about your business. Contact Rosemary Bookkeeping Shrewsbury for a friendly, no-obligation conversation about bookkeeping, VAT, payroll, Making Tax Digital support or simply getting your records more organised. Let’s talk, enquire online: www.rosemarybooks.co.uk/shrewsbury or call us on 07799041599 for your free 15 minute consultation

What Does a Bookkeeper Do? A Guide for UK Businesses

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Have you ever wondered, “What does a bookkeeper actually do?” Or if you’re not sure whether you need a bookkeeper, you’re not alone. Many business owners know bookkeeping is important but aren’t entirely sure what a bookkeeper actually does, or how they could help.

Whether you’re a sole trader, landlord or limited company, a professional bookkeeper can save you time, help you stay compliant, and give you a clearer picture of your business finances.

What does a bookkeeper do?

A bookkeeper records, organises and maintains your financial records. They track money coming in and going out, keep your accounts up to date, help you meet HMRC requirements, and provide accurate financial information so you can make informed business decisions.

Good bookkeeping isn’t just about recording transactions. It’s about ensuring your financial records are accurate, organised and ready whenever you need them.

What does a bookkeeper do day to day?

The exact tasks will vary depending on the business, but most bookkeepers regularly:

  • Record income and expenses
  • Reconcile bank accounts
  • Manage invoices and payments
  • Monitor cash flow
  • Keep digital financial records
  • Prepare VAT information where required
  • Help businesses comply with Making Tax Digital (MTD)
  • Produce regular financial reports
  • Work alongside accountants to prepare year-end accounts

Rather than spending evenings sorting receipts or trying to make sense of spreadsheets, many business owners leave these tasks to a qualified bookkeeper.

Why bookkeeping matters more than ever

Bookkeeping has changed significantly in recent years.

With Making Tax Digital becoming mandatory for an increasing number of sole traders and landlords, businesses are expected to keep digital records and submit information to HMRC using compatible software.

Keeping your bookkeeping up to date makes it much easier to meet these requirements.

It also means you’re less likely to face a last-minute rush as deadlines approach.

A practical example: Staying ready for Making Tax Digital

Imagine you’re a self-employed electrician earning more than £50,000 each year.

Without regular bookkeeping, you may spend days organising receipts and invoices before each quarterly submission.

A bookkeeper keeps your records up to date throughout the year, ensuring your income and expenses are recorded accurately and that your software is ready for each Making Tax Digital deadline.

Instead of scrambling every few months, your financial information is already organised.

A practical example: Understanding your cash flow

A small retail business appears busy, but the owner is constantly worried about money.

Sales are strong, yet supplier bills arrive before customer payments.

A bookkeeper regularly reconciles the accounts and produces cash flow reports, helping the owner understand exactly where money is going and when income is expected.

This enables better decisions on spending, stock purchases and future investment.

What’s the difference between a bookkeeper and an accountant?

Many people assume they’re the same, but they play different roles.

A bookkeeper focuses on maintaining accurate financial records throughout the year.

An accountant usually uses those records to prepare year-end accounts, provide tax advice and support business planning.

The two often work together.

Accurate bookkeeping gives your accountant the reliable information they need, reducing errors and helping everything run more smoothly.

When should you hire a bookkeeper?

There isn’t a perfect time, but there are clear signs it’s becoming necessary.

You may benefit from a bookkeeper if:

  • Your bookkeeping is consistently left until the last minute.
  • You’re spending evenings or weekends updating your accounts.
  • You’re unsure whether your records are accurate.
  • You’re preparing for Making Tax Digital.
  • Your business is growing, and finances are becoming harder to manage.
  • You want greater confidence in your cash flow and financial reporting.

Many business owners wait until they’re overwhelmed.

Starting earlier often saves time and reduces stress.

Can a local bookkeeper make a difference?

Absolutely.

While cloud accounting software allows records to be managed digitally, having a local bookkeeper still offers significant advantages.

They understand local businesses, can provide personal support when needed, and are available to answer questions as your business grows.

At the same time, modern bookkeeping software means your records can be managed securely wherever you are in the UK, giving you the best of both local expertise and digital convenience.

What should you look for in a bookkeeper?

Choosing the right bookkeeper is about more than price.

Look for someone who:

  • Understands your business.
  • Stays up to date with HMRC requirements.
  • Uses recognised bookkeeping software.
  • Communicates clearly and regularly.
  • Provides proactive support rather than simply recording transactions.

A good bookkeeper becomes an extension of your business, helping you stay organised throughout the year, not just when deadlines arrive.

How Rosemary Bookkeeping can help

Whether you’re a sole trader, landlord or growing business, Rosemary Bookkeeping offers practical bookkeeping support tailored to your needs.

Our local bookkeepers help businesses across the UK maintain accurate financial records, prepare for Making Tax Digital, monitor cash flow and remain compliant with HMRC requirements.

Instead of worrying about paperwork, you can focus on running your business with confidence, knowing your bookkeeping is in safe hands.

Find your nearest Rosemary Bookkeeper today to discover how professional bookkeeping can save you time, reduce stress and help your business stay on track.

What Happens After Your First MTD Submission?

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Submitting your first Making Tax Digital (MTD) update is a key milestone. If you have successfully completed your first quarterly submission, congratulations! You have taken the first step towards a new method of reporting your income to HMRC.

However, your first MTD submission is just that, the first of multiple updates you’ll make throughout the tax year. Knowing what comes next will help you stay organised, avoid unnecessary stress, and make future submissions much simpler.

What happens after your first MTD submission?

Once you’ve submitted your first quarterly update, you move on to the next reporting period.

Your bookkeeping doesn’t stop after you’ve submitted. Instead, you’ll continue recording your income and expenses throughout the year before submitting your next quarterly update.

Think of your first submission as the start of a new routine rather than a one-off task.

Your next MTD deadlines

Making Tax Digital requires four quarterly updates each tax year.

If you’ve completed your first submission, your remaining deadlines are:

  • 7 November for the period 6 July to 5 October
  • 7 February for the period 6 October to 5 January

At the end of the tax year, you’ll also need to complete your Final Declaration by 31 January, confirming your income and making any final adjustments before your tax is calculated.

Knowing these dates now lets you plan ahead rather than rushing as each deadline approaches.

Keep your bookkeeping up to date

One of the biggest mistakes businesses make after their first submission is assuming they can relax until the next deadline.

In reality, this is the perfect opportunity to build good bookkeeping habits.

Keeping your records updated regularly means:

  • Your next submission will take less time.
  • Errors are easier to identify.
  • Bank accounts stay reconciled.
  • Receipts and invoices are less likely to be lost.
  • You’ll have a clearer picture of your business finances throughout the year.

Many businesses find that spending a little time each week is far easier than trying to catch up at the end of every quarter.

Review what worked and what didn’t

Your first submission is a valuable learning experience.

Take a few minutes to ask yourself:

  • Was your software easy to use?
  • Were your records complete?
  • Did you struggle to find receipts?
  • Were your bank accounts reconciled?
  • Did you leave everything until the last minute?

If any part of the process felt difficult, now is the best time to improve it before your next submission.

Remember, the first year is a learning opportunity

HMRC has introduced a soft landing for the first year of Making Tax Digital for Income Tax.

While you are still expected to submit your quarterly updates, no penalty points will be issued for late quarterly submissions during the 2026/27 tax year.

This gives businesses time to become familiar with the new reporting process.

That said, it shouldn’t be seen as a reason to delay. Building good habits now will make future years much easier, especially when the full points-based penalty system applies.

Making Tax Digital is more than compliance

Although MTD is designed to improve tax reporting, there are benefits for your business too.

Keeping your bookkeeping up to date means you can:

  • Understand your cash flow.
  • Monitor your income and expenses.
  • Plan for future tax bills.
  • Spot trends in your business.
  • Make better financial decisions.

Instead of only looking at your figures once a year, you’ll have a much clearer understanding of how your business is performing throughout the year.

How Rosemary Bookkeeping can help

If you’ve completed your first MTD submission, now is the perfect time to make sure the rest of the year runs smoothly.

Your local Rosemary Bookkeeper can help you:

  • Keep your records accurate and up to date.
  • Reconcile your accounts regularly.
  • Prepare each quarterly submission.
  • Stay compliant with HMRC requirements.
  • Make the most of your bookkeeping throughout the year.

Making Tax Digital doesn’t end after your first submission. With the right support, every future update can become quicker, easier, and far less stressful.

Find your nearest Rosemary Bookkeeper today.

Making Tax Digital Quarterly Update Deadlines: Every Date You Need to Know

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Making Tax Digital (MTD) for Income Tax is changing how sole traders and landlords report their income to HMRC. Instead of waiting until the end of the tax year to complete a Self Assessment tax return, those within scope must now keep digital records and submit quarterly updates using HMRC-compatible software.

With the first submission deadline fast approaching, understanding the key dates is essential. Missing a deadline or leaving your bookkeeping until the last minute can create unnecessary stress and make the transition to MTD much harder.

Here’s everything you need to know.

Who needs to follow Making Tax Digital?

Making Tax Digital for Income Tax is being introduced in phases.

From 6 April 2026, MTD applies to:

  • Sole traders with qualifying gross income over £50,000
  • Landlords with qualifying gross property income over £50,000
  • Individuals with combined self-employment and property income above £50,000

The rollout will continue:

  • 6 April 2027 – Income over £30,000
  • 6 April 2028 – Income over £20,000

If you are approaching these thresholds, preparing now will make the transition much easier.

The four Making Tax Digital quarterly update deadlines

One of the biggest changes under MTD is moving from one annual submission to four quarterly updates throughout the tax year.

The deadlines are:

7 August

Reporting period: 6 April to 5 July

This is the first quarterly submission and the first opportunity for many businesses to report under the new system.

7 November

Reporting period: 6 July to 5 October

Your second quarterly update continues to build your digital tax record for the year.

7 February

Reporting period: 6 October to 5 January

The third quarterly update covers the busy autumn and Christmas trading period for many businesses.

7 May

Reporting period: 6 January to 5 April

This completes the fourth quarterly update and finishes your reporting for the tax year.

Although these updates provide HMRC with information throughout the year, they are not your final tax return.

Don’t forget the final declaration

As well as your quarterly updates being submitted, you must still complete your Final Declaration.

31 January

This deadline allows you to:

  • Confirm your quarterly figures
  • Declare any additional income
  • Make final adjustments
  • Calculate your overall tax liability

For most businesses, this replaces the current Self Assessment process while bringing together all sources of taxable income.

Why these deadlines matter

Unlike the old system, Making Tax Digital spreads reporting across the entire year.

This means bookkeeping can no longer be something you only think about in January.

Keeping your records updated regularly helps you:

  • Avoid last-minute pressure
  • Reduce bookkeeping errors
  • Prepare accurate quarterly updates
  • Understand your tax position throughout the year
  • Stay compliant with HMRC requirements

Many businesses will find that maintaining their bookkeeping monthly makes quarterly submissions much simpler.

Is there a penalty if you miss a deadline?

HMRC has introduced a soft landing period for the first year of Making Tax Digital for Income Tax.

During the 2026/27 tax year, no penalty points will be issued for late quarterly updates.

However, you are still expected to submit your quarterly updates on time. The soft landing gives businesses the opportunity to become familiar with the new system before the points-based penalty regime is fully enforced.

Using this first year to build good bookkeeping habits will make future submissions much easier.

How Rosemary Bookkeeping can help

Making Tax Digital introduces more reporting throughout the year, but it does not have to become another burden.

Your local Rosemary Bookkeeper can help you:

  • Understand whether MTD applies to you
  • Register for Making Tax Digital
  • Set up HMRC-compatible software
  • Keep your digital records accurate
  • Prepare each quarterly update
  • Stay on top of every important deadline

Whether your first submission is just around the corner or you’re preparing for the £30,000 threshold in 2027, getting organised now will help you stay compliant and reduce stress.

Find your nearest Rosemary Bookkeeper today.

Last-Minute MTD Checklist Before the August Deadline

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Is Your Business Ready for 7 August?

The first quarterly Making Tax Digital (MTD) deadline is almost here.

If you’re a sole trader or landlord with qualifying income over £50,000, your first quarterly update covering the period from 6 April to 5 July 2026 is due by 7 August 2026.

If you’ve left things a little later than planned, don’t worry. There’s still time to get organised.

Use this MTD checklist to make sure you’re ready before the deadline arrives.

1. Make Sure You’re Using MTD-Compatible Software

Your quarterly update must be submitted via HMRC-compatible software.

If you’re still relying on paper records or spreadsheets without approved bridging software, now is the time to review your setup.

If you’re unsure whether your software is compatible, your bookkeeper can advise.

2. Bring Your Records Up To Date

Your bookkeeping should cover the entire reporting period from 6 April to 5 July.

Check that you’ve recorded:

  • All sales and income
  • All business expenses
  • Bank transactions
  • Invoices issued
  • Receipts for purchases

The more complete your records are, the easier your submission will be.

3. Reconcile Your Bank Account

Your bookkeeping records should match your bank account.

Reconciling your transactions helps identify:

  • Missing payments
  • Duplicate entries
  • Incorrect amounts
  • Transactions that still need categorising

This simple step can prevent mistakes before they’re submitted.

4. Check Your Expense Categories

Have you recorded expenses correctly?

Common categories include:

  • Office costs
  • Travel
  • Equipment
  • Professional fees
  • Staff costs
  • Premises costs

Accurate categorisation makes your records clearer and helps ensure your submission is complete.

5. Look For Missing Information

Before you submit, take a few minutes to check for anything that may have been overlooked.

Ask yourself:

  • Have I recorded every business expense?
  • Are there any missing receipts?
  • Have all invoices been entered?
  • Have all bank transactions been reviewed?

Small gaps are much easier to fix now than they are further down the line.

6. Don’t Leave It Until The Last Minute

The closer you leave your submission, the less time you’ll have to resolve unexpected issues.

Software questions, missing documents or incorrect records all take time to fix.

Submitting early gives you confidence that everything has been completed correctly.

7. Remember, The Soft Landing Doesn’t Mean You Should Wait

HMRC has introduced a soft landing for quarterly submissions during the 2026/27 tax year.

This means you won’t incur late-submission penalty points for your quarterly updates during the first year.

However, you’re still legally required to:

  • Keep digital records
  • Submit quarterly updates
  • Use compatible software

Late payment penalties and interest can still apply where relevant, and the full penalty points system begins from April 2027.

Think of this year as your opportunity to build good habits before the rules become stricter.

Need Help Before The Deadline?

If you’re looking at this MTD checklist and thinking you’ve still got a lot to do, you’re not alone.

Many businesses are still adapting to Making Tax Digital, and there’s no benefit in struggling through it alone.

Your local Rosemary Bookkeeper can help you:

  • Bring your records up to date
  • Check your bookkeeping is accurate
  • Make sure you’re using compatible software
  • Prepare your first quarterly update
  • Build a bookkeeping routine that makes future deadlines much easier

The August deadline doesn’t have to be stressful.

A little preparation now can make every subsequent quarterly submission feel much more manageable.

Find your nearest bookkeeper here, or call us on 0345 8620072

Two-Thirds of MTD Clients Haven’t Registered Yet. Why You Need to Act Now

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Recent research from Azets found that around two-thirds of clients affected by MTD had still not registered.

That is a worrying figure, especially now we are in July, and the first submission deadline is only weeks away. If you are within scope and have not registered yet, now is the time to act.

If you fall within this scope and have not yet registered, it is crucial to act now.

Understanding why this matters is essential.

Registering for MTD is not the same as simply using bookkeeping software.

You need to make sure:

  • You are signed up correctly
  • Your software is HMRC-compatible
  • Your records are digital
  • Your income and expenses are being kept up to date
  • You are ready for quarterly submissions

Leaving it too late could mean rushing software setup, moving records across, and trying to fix bookkeeping gaps close to the deadline.

Who needs to register?

MTD for Income Tax now applies to:

  • Sole traders with gross income over £50,000
  • Landlords with gross property income over £50,000
  • Those with combined self-employment and property income over £50,000

The first quarterly period is already underway and runs from 6 April to 5 July 2026.

The first submission deadline is 7 August 2026.

The threshold will be reduced to £30,000 from April 2027 and to £20,000 from April 2028, bringing many more people into scope.

Why people are delaying

Some people do not realise they are affected. Others assume their accountant or software has already handled it. Some are simply putting it off because MTD feels complicated.

But delaying registration does not delay the rules.

If you are affected, you still need to comply.

What happens next?

The first year includes a soft landing, so no penalty points will be issued for late quarterly updates during 2026/27. But that does not mean you can ignore the deadlines.

You still need to submit updates. More importantly, you need to use the first year to build good habits before penalties become a real risk.

How Rosemary Bookkeeping can help you register and get MTD ready

If you are part of the two-thirds who have not yet registered for Making Tax Digital, you do not have to work it out alone.

Your local Rosemary Bookkeeper can help you understand what needs to happen next and take the pressure out of getting ready before the first submission deadline.

We can help with:

  • Checking whether MTD applies to you
  • Registering for Making Tax Digital
  • Choosing and setting up HMRC-compatible software
  • Moving your records into a digital format
  • Reviewing income and expenses for the first quarterly update
  • Preparing for the 7 August 2026 submission deadline
  • Keeping your bookkeeping up to date going forward

This is not just about registration. It is about ensuring your records are accurate, your software works, and your submissions are handled properly.

With the first deadline only weeks away, now is the time to get support.

Find your nearest Rosemary Bookkeeper today.

What Should You Do If You’re Behind on Your Bookkeeping Before the August MTD Deadline?

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Behind on your bookkeeping? Now what?

If you’re reading this and your bookkeeping isn’t up to date, you’re probably wondering whether you’ve left it too late.

The good news?

Probably not.

The first MTD deadline is approaching, yet many business owners are in exactly the same position. They’ve been busy running their business, serving customers and dealing with day-to-day demands, while bookkeeping has quietly slipped down the priority list.

If that’s you, don’t panic.

Now is the time to take action.

What Usually Happens When Records Fall Behind?

Most bookkeeping doesn’t suddenly become six months out of date.

It happens gradually.

One missed week becomes two.

A pile of receipts builds up.

Bank transactions stop being reconciled.

Then, suddenly, a deadline approaches, and there’s no clear picture of where the business stands.

That’s when stress kicks in.

Why Catching Up Gets Harder

The longer bookkeeping is left, the harder it becomes.

You might struggle to remember what a payment was for.

Receipts may have been misplaced, and business expenses can easily be forgotten.

Transactions take longer to reconcile because they’re no longer fresh in your mind.

Instead of taking an hour, the job starts taking days.

It’s Not Just About The August Submission

The first quarterly update is only one part of Making Tax Digital.

Good bookkeeping is about building a routine that works every week, not just every three months.

When your records stay up to date:

  • Your quarterly updates become much quicker.
  • Your figures are more accurate.
  • You know how your business is performing.
  • Deadlines stop feeling overwhelming.

The August submission is simply the first opportunity to put those habits into practice.

Don’t Spend July Chasing Paperwork

Imagine spending the last week of July searching through emails for invoices, looking for missing receipts and trying to remember what happened in April.

Now imagine opening your bookkeeping software and seeing everything already organised.

That’s the difference regular bookkeeping makes.

It’s Easier To Ask For Help Now

Many business owners wait until they’re completely overwhelmed before asking for help.

The reality is it’s much easier, and often much cheaper, to get support before the deadline arrives.

A bookkeeper can help you:

  • Bring your records up to date.
  • Check everything is complete.
  • Identify missing information.
  • Make sure you’re using MTD-compatible software.
  • Prepare you for future quarterly updates.

You Haven’t Missed The Opportunity

One of the biggest misconceptions about MTD is that if you’re behind, you’ve failed.

You haven’t.

The 2026/27 tax year is designed to help businesses get used to quarterly reporting.

Use this period to build better habits, improve your bookkeeping routine and gain confidence in your records.

Rosemary Bookkeeping Can Help

Whether you’re completely up to date or weeks behind on your bookkeeping, we’ll meet you where you are.

We’ll help organise your records, prepare you for quarterly reporting and make sure your bookkeeping supports your business throughout the year.

Because the goal isn’t simply to meet one deadline.

It’s to make every deadline after that feel easier.

Find your nearest bookkeeper here, or call us on 0345 8620072

The August MTD Deadline: What You Need To Know

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The First Major Making Tax Digital Deadline Is Approaching

Making Tax Digital (MTD) for Income Tax may have gone live in April 2026, but many sole traders and landlords are now focusing on the first major deadline.

For those affected by the new rules, the first quarterly update must be submitted to HMRC by 7 August 2026.

While HMRC has introduced a soft-landing period for the first year, this deadline remains an important milestone. It is the first real test of whether your bookkeeping records, software, and processes are ready for the new digital reporting requirements.

If you are unsure what the August deadline means for you, here is what you need to know.

Who Does The August Deadline Apply To?

The deadline applies to sole traders and landlords with a combined gross income exceeding £50,000 from self-employment and property income in the 2024/25 tax year.

If you fall into this category, you should already be:

  • Keeping digital records
  • Using HMRC-compatible software
  • Recording income and expenses digitally
  • Preparing quarterly updates for HMRC

The first quarterly reporting period runs from 6 April 2026 to 5 July 2026.

Your first update covering this period must be submitted by 7 August 2026.

What Information Needs To Be Submitted?

Your quarterly update is a summary of your business activity during the reporting period.

This includes:

  • Total income received
  • Total allowable expenses
  • Information taken directly from your digital records
  • Separate submissions for different income sources where required

The update must be submitted via compatible software. Information cannot simply be entered manually into HMRC.

If you have both self-employed and rental income, separate updates may be required.

Will You Be Fined If You Miss The August Deadline?

For the 2026/27 tax year, HMRC has introduced a soft landing period.

This means late quarterly updates will not receive penalty points during the first year of the scheme.

However, that does not mean the deadline should be ignored.

You are still legally required to:

  • Keep digital records
  • Submit quarterly updates
  • Maintain accurate information

The soft landing is designed to help businesses adjust to the new system, not to delay compliance altogether.

Why August Matters

The August deadline is about more than a single submission.

It marks the start of a completely different way of reporting tax information.

Many businesses have traditionally reviewed their records once or twice a year. Under MTD, record-keeping becomes a routine part of running the business.

The businesses that cope best with Making Tax Digital are not necessarily the largest or the most experienced.

They are the businesses that keep their records consistently up to date throughout the year.

Common Mistakes To Avoid

As the deadline approaches, avoid these common issues:

Leaving bookkeeping until July

Trying to organise three months of records at the last minute increases the risk of mistakes.

Using non-compatible software

Not all bookkeeping systems meet HMRC’s MTD requirements.

Missing transactions

Incomplete records can lead to inaccurate submissions.

Mixing personal and business spending

Clear separation makes bookkeeping easier and improves accuracy.

Assuming there is nothing to do because of the soft landing period

Compliance requirements still apply even though penalty points are not being issued for quarterly updates in the first year.

How Rosemary Bookkeeping Can Help

If you are feeling behind, you are not alone.

Many business owners are still adapting to Making Tax Digital and working out exactly what is required.

Your local Rosemary Bookkeeper can help you:

  • Get organised before the August deadline
  • Keep accurate digital records
  • Use MTD-compatible software
  • Stay compliant with HMRC requirements
  • Reduce the stress of quarterly reporting

The August deadline is approaching quickly.

The sooner you get your records in order, the easier your first MTD submission will be.

Need Help Before 7 August?

Making Tax Digital does not need to be overwhelming.

With the right support and the right systems, quarterly reporting can become part of your normal business routine.

Find your nearest bookkeeper here, or call us on 0345 8620072

One in Five Fear Making Tax Digital Could Hurt Their Business. Should You Be Concerned?

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Making Tax Digital remains one of the most significant changes to the UK tax system in recent years. While the aim is to modernise tax reporting and encourage better digital record-keeping, many business owners remain uncertain about what the changes mean for them.

A recent survey found that more than one in five sole traders and landlords already affected by Making Tax Digital believe the changes could harm their business.

With the first quarterly submission deadline approaching and further threshold changes planned over the coming years, it is easy to see why many businesses are closely watching.

What is Making Tax Digital?

Making Tax Digital (MTD) is HMRC’s programme to move tax reporting from annual submissions to more frequent digital reporting.

Under Making Tax Digital for Income Tax, affected sole traders and landlords must:

  • Keep digital records
  • Use HMRC-compatible software
  • Submit quarterly updates to HMRC
  • Complete an end-of-year declaration

The aim is to improve accuracy and give taxpayers a clearer view of their tax position throughout the year.

Why are some businesses concerned?

According to the survey, 22% of sole traders and landlords already affected by Making Tax Digital believe the reforms will harm their business.

For many, these concerns are understandable.

The shift from a single annual tax return to quarterly updates marks a significant change in how records are kept. Businesses that have traditionally updated their bookkeeping once or twice a year may now need to adopt entirely new processes.

Common concerns include:

  • More frequent reporting requirements
  • Learning new software
  • Additional administration
  • Keeping records updated throughout the year
  • Fear of making mistakes

For smaller businesses, these changes can initially feel like yet another task on an already busy workload.

The reality may be less daunting than expected

Interestingly, the same survey found that attitudes towards Making Tax Digital appear to improve once businesses start using the system.

Among respondents already using MTD, 19% viewed the reforms positively, while 29% felt the benefits would become clearer in time.

This suggests that much of the concern may stem from uncertainty rather than from experience.

Many businesses find that once software is set up and processes are in place, keeping records up to date becomes part of their normal routine.

The next deadlines are approaching

The first quarterly reporting period under Making Tax Digital runs from 6 April to 5 July 2026.

The first submission deadline is 7 August 2026.

Currently, the rules apply to sole traders and landlords with qualifying income exceeding £50,000.

However, the threshold will be reduced to £30,000 from April 2027 and to £20,000 from April 2028, bringing many more businesses into scope.

Even if Making Tax Digital does not affect you today, it may affect you sooner than you expect.

Good bookkeeping makes the transition easier

One of the key factors in a successful transition to Making Tax Digital is the quality of your bookkeeping.

Businesses that already:

  • Keep records up to date
  • Use digital systems
  • Reconcile bank accounts regularly
  • Store receipts and invoices electronically

Are often better prepared for the changes.

The challenge is usually not the submission itself. It has accurate information available when it is needed.

How Rosemary Bookkeeping Can Help

MTD does represent a change in how businesses manage their finances, but it need not be difficult.

Whether you are already affected or preparing for future threshold changes, your local Rosemary Bookkeeper can help:

  • Understand the rules
  • Set up compatible software
  • Maintain accurate records
  • Prepare for quarterly reporting
  • Stay compliant with HMRC requirements

The survey highlights that many businesses remain uncertain about Making Tax Digital. The best way to reduce that uncertainty is through preparation, good record-keeping, and the right support.

Find your nearest Rosemary Bookkeeper today.

This article was inspired by reporting on a Small Business Monitor Survey conducted by FreeAgent regarding attitudes towards Making Tax Digital. Only factual survey findings and published threshold information have been referenced.

Why Waiting Until July Is Too Late for the Making Tax Digital Deadline

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The first Making Tax Digital deadline is now firmly on the horizon. For businesses and landlords affected by the new rules, the first quarterly update covering 6 April to 5 July 2026 must be submitted by 7 August 2026.

At first glance, that may seem like plenty of time. However, many businesses underestimate how much preparation is required. Waiting until July to start thinking about the Making Tax Digital deadline could leave you rushing to organise records, learn new software, and correct bookkeeping issues at the last minute.

Making Tax Digital starts long before the deadline

The first submission may not be due until August, but the records required for it have been accumulating since 6 April.

Every sale, expense, receipt, and transaction needs to be recorded accurately throughout the quarter.

If bookkeeping is left until July, you could be faced with three months’ worth of records to sort through in a short space of time.

Software takes time to set up.

Making Tax Digital requires compatible software.

If you are moving from spreadsheets, paper records, or a different bookkeeping system, there may be work involved in:

  • Setting up your accounts
  • Connecting bank feeds
  • Importing existing data
  • Learning new processes
  • Checking everything is working correctly

The sooner this is completed, the smoother your first submission is likely to be.

Small bookkeeping issues become bigger problems

Many businesses discover bookkeeping issues when they start preparing reports.

Common examples include:

  • Missing expenses
  • Duplicate transactions
  • Unreconciled bank accounts
  • Incorrect categories
  • Missing receipts

Finding and correcting these issues takes time. Leaving everything until the last few weeks before a deadline creates unnecessary pressure.

Good habits are easier to build gradually

Making Tax Digital is not just a software change. It is a change in how records are kept.

Businesses that update their records regularly throughout the quarter will generally find reporting much easier.

Waiting until the deadline approaches often means rushing to catch up rather than building a sustainable process.

The first year is a chance to prepare properly.

HMRC has introduced a soft landing period for the first year of MTD for Income Tax. This means no penalty points will be issued for late quarterly updates during the 2026/27 tax year.

That does not mean deadlines should be ignored.

The first year provides an opportunity to establish good bookkeeping habits and ensure your systems work properly before penalties become a real risk.

How Rosemary Bookkeeping can help

If you are unsure whether your records, software, or processes are ready, now is the ideal time to review them.

Your local Rosemary Bookkeeper can help you:

  • Prepare for your first MTD submission
  • Check your bookkeeping records
  • Set up compatible software
  • Create a process that works for your business

The earlier you prepare, the easier MTD becomes.

Find your nearest Rosemary Bookkeeper today.

Making Tax Digital First Deadline: What You Need to Know

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The first Making Tax Digital deadline is 7 August 2026.

Making Tax Digital for Income Tax is now in place for businesses and landlords over the £50,000 threshold. The next step is the first submission deadline, when many people will feel the change.

If you are within scope, this is when your bookkeeping needs to be ready.

Who needs to submit

From April 2026, MTD applies to:

  • Sole traders with income over £50,000
  • Landlords with property income over £50,000
  • Combined income over £50,000

From April 2027, this drops to £30,000.

When is the first deadline

The first quarterly period runs from 6 April to 5 July.

The first Making Tax Digital deadline is 7 August 2026.

What needs to be submitted

You need to send a summary of your income and expenses for the period using MTD-compatible software.

This is not a full tax return, but your figures must be accurate and based on up-to-date records.

How the penalty system works in the first year

HMRC uses a points-based system for late submissions, similar to a driving licence.

  • You receive points for missed deadlines
  • A £200 penalty is issued once you reach 4 points

However, there is a soft landing period for the 2026/27 tax year.

This means:

You must still submit quarterly updates on time; however, no penalty points will be issued for late quarterly submissions during this first year

The quarterly deadlines covered by this are:

  • 7 August 2026
  • 7 November 2026
  • 7 February 2027
  • 7 May 2027

The first real risk of penalty points comes later.

You could receive your first point if you miss the deadline for the final declaration, which is due by 31 January 2028.

How to prepare

To stay on track, you should:

  • Keep your records up to date
  • Use MTD-compatible software
  • Reconcile your bank accounts
  • Check your figures before submitting

Why this matters

Even without penalties in the first year, deadlines still matter. Late or incomplete records will make future submissions harder.

Using this first year to build good habits will make ongoing MTD reporting much easier.

How Rosemary Bookkeeping can help

If you’re uncertain about your readiness, your local Rosemary Bookkeeper can assist you in preparing and submitting your records correctly.

Find your nearest Rosemary Bookkeeper today.

The £30,000 Making Tax Digital Threshold Is Coming: Why You Should Prepare Now

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Making Tax Digital for Income Tax has now begun for some businesses, but many more will need to comply in 2027.

From this month (April 2026), sole traders and landlords earning over £50,000 must comply with the new rules. Starting April 2027, the Making Tax Digital threshold will decrease to £30,000, including a much larger number of people.

As a result of this change, many businesses that do not yet need to comply will have to prepare earlier than expected. Waiting can make the transition more difficult, especially if your current bookkeeping system is not yet ready.

Understanding what the next Making Tax Digital threshold means now allows you to make changes without pressure.

Who will be affected by the £30,000 threshold?

From April 2027, Making Tax Digital for Income Tax will apply to sole traders and landlords with a total gross income exceeding £30,000 per year.

This income figure reflects turnover before expenses, not profit. It also includes combined income from self-employment and property if you have both.

This means many small businesses that currently submit one Self Assessment return each year will need to keep digital records and submit updates throughout the year instead.

Even if your income is currently just below the limit, growth or changes in work could bring you within scope.

Why more businesses will need to change their bookkeeping

The drop from £50,000 to £30,000 will affect many small businesses, part-time businesses, and landlords who may not currently use accounting software.

Under Making Tax Digital, you must:

  • Keep digital records
  • Use compatible software
  • Submit quarterly updates
  • Submit a final declaration at the end of the tax year

This differs from the current system, where records can only be reviewed once a year before the Self Assessment deadline.

Because reporting occurs more frequently, bookkeeping must be maintained up to date throughout the year.

Why you should not wait until 2027

Although the £30,000 threshold does not come into effect until April 2027, leaving preparation until the last minute can cause issues.

Switching to software, organising records, and adapting to regular updates takes time. Many businesses find that changing systems while also trying to meet deadlines creates unnecessary pressure.

Preparing early allows you to transition gradually to digital records and ensure everything functions correctly before the rules come into effect.

It also minimises the risk of errors when quarterly reporting starts.

Software setup often takes longer than expected

One of the major shifts with Making Tax Digital is the need to use compatible software.

If you presently store records on paper or spreadsheets, you might need to switch to cloud accounting software. This includes:

  • Choosing the right system
  • Setting up your accounts correctly
  • Importing existing records
  • Learning how to use the software
  • Making sure it links with HMRC

Trying to manage all of this alongside meeting tax deadlines can be challenging. Getting things organised early makes the process much easier.

Bookkeeping habits may need to change

Under the current system, some businesses only update their records once or twice a year. With Making Tax Digital, HMRC have moved away from this.

Quarterly updates require records to be maintained more frequently. This generally involves:

  • Recording income regularly
  • Keeping receipts organised
  • Reconciling bank accounts
  • Checking figures during the year
  • Making sure submissions are ready on time

For many people, the greatest change is not the software but developing the habit of maintaining updated records.

Starting now makes this easier before the rules require it.

Preparing early reduces the risk of penalties

Making Tax Digital applies a points-based penalty system for late submissions. Repeatedly missing deadlines can result in financial penalties and interest charges.

Organising records from the start of the year makes it easier to submit updates on time.

If your bookkeeping is already well organised before the £30,000 threshold kicks in, the transition to MTD will seem like a minor adjustment rather than a significant shift.

How Rosemary Bookkeeping can help you prepare

Even if you are not yet impacted by Making Tax Digital, now is the right moment to ensure your bookkeeping is prepared for the future.

Your local Rosemary Bookkeeper can help you:

  • Check whether the rules will apply to you
  • Set up compatible software
  • Organise your records correctly
  • Keep your bookkeeping up to date
  • Prepare for quarterly reporting

Getting ready early for the Making Tax Digital threshold changes will help you stay in control and avoid last-minute stress when they take effect.

Find your nearest Rosemary Bookkeeper today.

Making Tax Digital Deadline Passed: What To Do If You Are Not Compliant

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Making Tax Digital deadline passed: What do you need to do if you are not compliant?

Making Tax Digital for Income Tax is now in effect for businesses and landlords exceeding the £50,000 threshold. If you’re unsure whether your records meet the new standards or if you’ve already missed a submission, you’re not alone.

Many business owners realise that once the deadline passes, gaps in their bookkeeping become more apparent. Disorganised records, missing transactions, or late updates can make remaining compliant difficult.

The key point is that most issues can be amended. Acting promptly makes the process much simpler and lessens the chance of further penalties.

Disorganised records can quickly lead to compliance problems

When bookkeeping is not kept up to date, meeting reporting deadlines becomes more difficult. Under Making Tax Digital, this is even more crucial because updates need to be submitted regularly, not just annually.

Common problems include:

  • Transactions not recorded
  • Bank accounts not reconciled
  • Receipts missing
  • Personal and business spending mixed together

These issues do not always lead to immediate penalties, but they increase the risk of late or incorrect submissions.

Missing transactions can affect your submissions

Under MTD, information is sent to HMRC more frequently. If records are incomplete, the figures submitted might not be accurate.

This can lead to:

  • Corrections needing to be made later
  • Delays in submitting updates
  • Questions from HMRC
  • Additional work to fix earlier periods

Small gaps can escalate into larger issues when reporting occurs multiple times a year.

Late submissions can lead to penalty points

HMRC now employs a points-based system for late submissions.

Each missed deadline adds a point, and once the point limit is reached, a financial penalty is applied.

Points stay on your record until you meet the conditions to reset them. As Making Tax Digital (MTD) requires more frequent reporting, the risk of missing a deadline increases if your bookkeeping isn’t up to date.

Late payments may also incur interest charges, even if the delay was due to incomplete records.

Fixing past bookkeeping is usually possible

If you have fallen behind since the MTD deadline, the situation can usually be rectified.

This may involve:

  • Updating missing entries
  • Reconciling bank accounts
  • Correcting earlier figures
  • Checking previous submissions
  • Making sure records meet digital requirements

It can take time to restore everything to order, but once completed, future reports are much simpler.

Attempting to delay until the next deadline often makes the task more difficult.

Getting ready for the next reporting period

Making Tax Digital is an ongoing process, not a one-time change. It requires continuous reporting throughout the year.

This highlights the importance of shifting from catch-up bookkeeping to a regular routine. Keeping records up to date monthly, or even weekly, makes quarterly submissions much simpler and reduces the risk of penalties.

Once a system is established, staying compliant becomes considerably less stressful.

Ongoing support makes compliance easier

Many businesses only seek assistance when issues arise. While one-off corrections are feasible, continuous bookkeeping support typically stops the same problems from recurring.

Regular bookkeeping involves:

  • Records stay accurate
  • Deadlines are easier to meet
  • Submissions are ready on time
  • You always know where your business stands

It also implies that future MTD changes will be simpler to manage.

How Rosemary Bookkeeping can help

If you’re unsure whether you’re fully compliant after the MTD deadline, seeking support now can help avoid further issues.

Your local Rosemary Bookkeeper can assist you:

  • Bring your records up to date
  • Correct errors and missing transactions
  • Make sure your bookkeeping meets MTD rules
  • Keep everything organised for future submissions

Most problems can be fixed, and the sooner they are reviewed, the easier it is to stay on track.

Find your nearest Rosemary Bookkeeper today.

What To Do Immediately After the Tax Year Ends

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The tax year ends on 5 April. For many business owners, the focus is on meeting the deadline. However, what you do immediately after the year ends is equally important.

A tidy close simplifies reporting, reduces errors, and prepares you effectively for the new tax year. Here is a straightforward checklist of what to do next.

1. Finalise Your Records to 5 April

Before the new tax year begins, make sure everything up to 5 April is complete.

Verify that:

  • All income up to 5 April has been recorded
  • All allowable expenses have been entered
  • Any late invoices related to the old tax year are correctly included
  • Dividend payments are properly documented

This is the time to fix small gaps. It is much easier to address missing items now than months later.

2. Reconcile Your Bank Accounts

Bank reconciliation confirms that your records align with your actual bank position.

Make sure:

  • Every transaction up to 5 April has been accounted for.
  • There are no unexplained discrepancies.
  • Duplicate or missing entries have been corrected.

If your accounts are not reconciled, your figures cannot be fully trusted. Closing the year without reconciliation may cause problems later.

3. Review Outstanding Invoices

Carefully review unpaid sales invoices and supplier bills.

Ask yourself:

  • Are there overdue invoices that need pursuing?
  • Are there bills from the previous tax year that haven’t yet been recorded?
  • Do you need to write off any bad debts? Keeping clear year-end records provides a realistic view of profit and cash flow.

4. Check Payroll Year-End Tasks

If you run payroll, April is a key period.

After 5 April, you should:

  • Submit your final Full Payment Submission for the tax year

  • Confirm year-end figures are correct

  • Issue P60s to employees by 31 May

  • Prepare for new tax codes and thresholds for the new year

Missing payroll steps can create compliance issues, so it is important to complete these tasks properly.

5. Archive the Previous Tax Year Properly

Once records are completed and reconciled, organise them systematically.

This involves:

  • Saving digital copies of reports
  • Clearly labelling folders by tax year
  • Backing up data securely
  • Storing supporting documents safely

A well-structured archive system makes it easier to respond to queries later and minimises confusion when preparing your next return.

Start the New Tax Year Clean

The days immediately after 5 April present an opportunity. Closing one year properly sets a stronger foundation for the next. Accurate records, reconciled accounts, and organised files reduce stress throughout the year.

They also prepare you for ongoing digital reporting requirements under Making Tax Digital.

How Rosemary Bookkeeping Can Help

If you are unsure whether your year has been closed correctly, support now can help prevent issues later.

Your local Rosemary Bookkeeper can:

  • We remove the hassle of organising your financial paperwork
  • We handle your VAT return promptly. time
  • We can communicate directly with your accountant, saving you time
  • We can provide monthly reports and figures to support your decision-making and help your business grow.

Find your nearest Rosemary Bookkeeper today.

The Most Common Making Tax Digital Myths

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Making Tax Digital Myths – BUSTED!

Making Tax Digital (MTD) has been in effect for several years now. As new changes are implemented, misunderstandings can result in delays, poor preparation, and unnecessary stress.

Below are some of the most common Making Tax Digital myths that are still circulating, along with the facts that clarify them.

Myth 1: “It does not apply to me”

Many business owners mistakenly believe that Making Tax Digital (MTD) does not apply to them. While this may be true for now, it may not hold in the long term.

Starting in April 2026, MTD for Income Tax will apply to sole traders and landlords whose gross income exceeds £50,000. By April 2027, this threshold will be lowered to £30,000.

It’s important to note that income is measured before expenses. If your turnover exceeds these thresholds, you will be subject to MTD requirements.

Even if you currently fall below the threshold, it is anticipated that your business may grow in the future. Ignoring MTD entirely can leave you unprepared for when it does apply.

Myth 2: “Spreadsheets are banned”

Spreadsheets are not banned.

Under MTD, digital records must be directly linked to HMRC using compatible software. If spreadsheets are utilised, they must connect through approved bridging software that submits data digitally, eliminating the need for manual copying and pasting.

The key requirement is digital record-keeping and digital submission. The format is less important than the compliance method.

What is no longer acceptable is maintaining paper records and entering totals manually at the end of the year.

Myth 3: “It replaces Self Assessment completely”

Making Tax Digital (MTD) changes how information is reported, but it does not eliminate the need for annual confirmation.

Under MTD for Income Tax, you will be required to:

  • Submit quarterly updates
  • Complete an End-of-Period Statement
  • Submit a final declaration

The final declaration effectively replaces the traditional Self Assessment submission, but the requirement to confirm your income and tax remains. This means that while reporting is now more frequent and structured, it has not been removed entirely.

Myth 4: “It is just more admin”

MTD increases reporting frequency, but it is not just additional paperwork.

The aim is to encourage real-time record keeping rather than year-end catch-up. For businesses that already regularly keep digital records, the change is less dramatic.

The pressure often comes from inconsistent bookkeeping habits. When records are updated monthly or quarterly, reporting becomes part of the routine rather than a sudden burden.

In many cases, MTD highlights existing weaknesses rather than creating new ones.

Why These Myths Matter

Believing incorrect information can hinder your preparation process. The longer you assume that Making Tax Digital (MTD) does not apply to you or misunderstand its requirements, the more challenging the transition will be.

A clear understanding of MTD enables smoother preparation. MTD focuses on maintaining digital records, providing regular updates, and ensuring accurate reporting. It is not meant to be unnecessarily complex.

How Rosemary Bookkeeping Can Help

If you are unsure whether MTD applies to you or how your current setup measures up, support is available.

Your local Rosemary Bookkeeper can:

  • Confirm whether you fall within scope
  • Review your digital record-keeping
  • Ensure your software meets MTD requirements
  • Help you prepare for quarterly reporting

Preparation reduces confusion. Clear records reduce risk.

Find your nearest Rosemary Bookkeeper today.

Is Your Current Bookkeeping Making Tax Digital Ready?

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Is your current bookkeeping Making Tax Digital ready?

Making Tax Digital is becoming a standard part of business operations. Although not everyone is required to comply immediately, expectations regarding digital records and regular updates are already influencing bookkeeping practices.

If you’re uncertain about whether your current setup is ready, you’re not alone. Many business owners feel they might be falling behind, but often they only need to make a few small adjustments. This simple self-check is designed to help you assess your current situation without any pressure.

Do you keep your records digitally?

MTD mandates that records be maintained in a digital format, including income, expenses, and relevant supporting details.

Ask yourself:

  • Are your records stored digitally rather than only on paper?
  • Can you easily access past transactions when needed?

If you primarily depend on paper or handwritten notes, this is the first area to assess.

Are your records kept up to date during the year?

With MTD (Making Tax Digital), bookkeeping is no longer a task to be done just once a year. It’s important to maintain regular updates.

Consider:

  • Do you update your records weekly or monthly?
  • Are there long gaps where nothing is recorded?

If you usually catch up near deadlines, this may indicate your routine needs support.

Can you clearly separate business and personal spending?

Maintaining clear separation is crucial under MTD. Mixed transactions complicate record reviews and can lead to repeated errors.

Check whether:

  • You use a dedicated business bank account
  • Personal spending regularly appears in your business records

Maintaining clarity simplifies digital reporting significantly.

Are your records accurate, not just complete?

It’s essential to record all transactions, but ensuring their accuracy is equally important.

Ask yourself:

  • Are expenses consistently categorised?
  • Do the figures match the bank statements after reconciliation?

Repeated small errors can become increasingly difficult to correct over time under MTD.

Do you know when MTD will apply to you?

Many people are uncertain about their timelines; here is clarification.

Understanding when Making Tax Digital (MTD) applies allows you to plan ahead with confidence rather than feeling rushed.

Do you feel confident explaining your figures?

A simple test is whether you can explain your numbers when asked. If your records are unclear or confusing, that often indicates the system needs improvement.

Effective bookkeeping should provide clarity, not uncertainty.

What your answers mean

If you answered “yes” to most of these questions, your bookkeeping is likely on the right track. If a few areas raised concerns, it doesn’t mean you are failing; rather, it indicates where small changes could lead to significant improvements.

MTD readiness is not about being perfect; it’s about consistency, clarity, and developing good habits.

How Rosemary Bookkeeping can help

Preparing for Making Tax Digital can be stress-free. Rosemary Bookkeeping assists businesses at every stage, whether you’re almost ready to review your setup or just beginning.

Your local Rosemary Bookkeeper can help you:

  • Assess your current bookkeeping
  • Identify small changes that improve readiness
  • Keep digital records accurate and organised
  • Prepare calmly for future MTD requirements

If you want reassurance or practical support, we are here to help get your bookkeeping Making Tax Digital ready.

Find your nearest Rosemary Bookkeeper today.

Why Outsourcing Your Bookkeeping Is Important for Making Tax Digital

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Find out why outsourcing your bookkeeping is important for Making Tax Digital.

Making Tax Digital (MTD) is transforming how businesses manage their records and report information to HMRC. Although the full implementation occurs in stages, the direction is clear. Digital record keeping, regular updates, and accurate data are becoming the norm, not the exception.

For many business owners, this shift prompts an important question. How do you remain compliant without bookkeeping consuming your time? This is where outsourcing becomes increasingly beneficial.

Making Tax Digital requires consistency, not catch-up

One of the most significant changes under MTD is shifting away from annual catch-ups. Instead of reviewing records only once a year, businesses are now expected to keep their information accurate and up to date throughout the year.

This can be challenging when bookkeeping is fitted in around other responsibilities. Missed receipts, delayed updates, and rushed reviews make compliance more difficult.

Outsourcing your bookkeeping helps ensure consistency. Records are updated regularly, transactions are checked thoroughly, and issues are identified early rather than at the point of submission.

Accuracy matters more under MTD

MTD depends on digital data flowing directly to HMRC. Errors become more apparent and are more difficult to correct later. Small mistakes, such as wrong categories or missing transactions, can recur across multiple submissions.

A professional bookkeeper knows how records should be organised and checked. This minimises the chance of repeated mistakes and helps ensure that submissions accurately show the true state of your business.

Outsourcing also provides peace of mind. You know your records are being checked by someone familiar with the rules and expectations.

MTD adds pressure to already busy schedules

Many business owners already feel stretched thin. Adding quarterly updates, digital record requirements, and future changes heightens that pressure.

Outsourcing removes the need to keep up with every technical detail. Your bookkeeper remains aware of MTD requirements and ensures your records meet them. This enables you to focus on running your business instead of managing compliance.

Outsourcing supports better planning, not just compliance

MTD is not just about reporting; it encourages businesses to review their figures more frequently. When bookkeeping is managed properly, you gain a clearer understanding of income, expenses, and cash flow.

Outsourced bookkeeping helps by keeping records organised and accessible. This makes it easier to plan ahead, prepare for tax payments, and adjust decisions based on accurate figures rather than estimates.

Preparation for future MTD phases starts now

MTD for Income Tax will begin to apply to more sole traders and landlords from April 2026, with thresholds decreasing gradually. Even if MTD does not apply to you yet, preparing early helps make the transition easier.

MTD for Income Tax will apply to:

  • Sole traders with income over £50,000 (from April 2026).
  • Sole traders with income over £30,000 (from April 2027).
  • Sole traders with income over £20,000 (from April 2028).
  • Landlords with property income over the same thresholds.

Outsourcing now helps develop good habits before they become necessary. Digital records are already established, routines are in place, and future changes seem less disruptive.

How Rosemary Bookkeeping can help

At Rosemary Bookkeeping, we assist businesses at every stage of Making Tax Digital. Our local bookkeepers offer reliable, professional support that ensures records remain accurate and compliant.

We help you:

  • Maintain clean, digital records
  • Stay organised throughout the year
  • Prepare for quarterly MTD reporting
  • Reduce stress around deadlines and compliance

Outsourcing your bookkeeping isn’t about losing control. It’s about gaining clarity, confidence, and time.

If you need assistance with preparing for Making Tax Digital, your local Rosemary Bookkeeper is ready to help.

Find your nearest Rosemary Bookkeeper today.

Budget 2025: What the Income Tax Rise Means for Landlords

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The Budget 2025 confirmed that landlords will face increased income tax on their property income from April 2027. This change forms part of a broader plan to raise revenue and tighten rules on property ownership.

It follows several years of reforms that have already reduced profit margins for many landlords. These upcoming changes also sit alongside the shift to Making Tax Digital, which will require digital record-keeping for landlords within the income thresholds.

This update offers a clear overview of what is changing and how organised bookkeeping, supported by MTD-ready systems, can help you plan.

Property income tax rates will rise in 2027

The Chancellor announced that income tax on property income will increase by two percentage points from April 2027. The new rates will be:

  • 22% for basic rate taxpayers
  • 42% for higher-rate taxpayers
  • 47% for additional rate taxpayers

For many landlords, these increases create another reduction in net returns. The OBR expects rental prices to rise, with typical rents in England predicted to increase by £20 to £25 per month.

For landlords who will soon be required to keep digital records under Making Tax Digital for Income Tax, keeping them updated will become even more critical. This helps you monitor how these higher tax rates affect your overall position.

Why this matters for landlords

The rise follows earlier changes to Mortgage Interest Relief and Stamp Duty, both of which raised the cost of holding rental property. The Office for Budget Responsibility noted that these measures have reduced landlord returns over the past decade.

It also warned that a long-term decline in rental supply could push rents higher if tenant demand continues.

For landlords with tight margins, even small changes in costs or taxes can shift long-term plans. Clear, accurate and digital bookkeeping helps you understand these shifts early. This is especially important as MTD introduces quarterly updates and stronger expectations for real-time record-keeping.

New High Value Council Tax Surcharge

Budget 2025 introduced an annual surcharge on residential properties valued at over £2 million. This will begin in April 2028 and will be based on 2026 valuations.

The surcharge will be banded:

  • £2,500 per year at the lower end

  • Up to £7,500 for properties above £5 million

This charge applies to property owners, not council taxpayers, which means landlords will see additional yearly costs. If you hold high-value property, accurate valuations and clear digital records will help ensure the correct surcharge is applied and correctly reported in your MTD submissions when required.

Reaction from industry bodies

Industry groups have raised concerns about the impact on both landlords and tenants. The NRLA has warned that the changes could reduce the number of available rental homes at a time when demand remains high.

Forecasts show that the UK will need close to one million new rental homes by 2031. Rising taxes, higher costs and increased compliance requirements may make it harder for landlords to keep properties in the private rented sector.

With MTD on the horizon, the need for organised, digital and up-to-date financial records will only grow.

What this means for your bookkeeping

New tax rates, added surcharges and the gradual introduction of Making Tax Digital mean that clean, accurate bookkeeping has never been more critical. Having organised digital records will help you understand the impact of rising costs and prepare early.

Here are a few practical steps to consider:

  • Review your rental income and expenses to understand your current margin
  • Keep digital records updated so you can model the impact of higher tax rates
  • Track property costs such as repairs, mortgage interest and fees
  • Store valuation documents securely for future council tax surcharge checks
  • Plan for cash flow changes from 2027 to 2028 and how they link to quarterly MTD reporting

Good information helps you manage change with confidence. It also gives you a clearer view when deciding whether to adjust rents, reinvest, or review parts of your portfolio.

How Rosemary Bookkeeping can support landlords

These changes create more pressure on already stretched margins. A structured and digital-first bookkeeping approach helps you stay in control.

Your local Rosemary Bookkeeper can help you:

  • Maintain clean and accurate property income records
  • Prepare for changes to tax and surcharges
  • Keep digital records organised for future MTD requirements
  • Track rising costs in a consistent and straightforward way

If you want support preparing your records or planning for the new rules, we are here to help.

Find your nearest Rosemary Bookkeeper today.

Making Tax Digital Checklist for Landlords

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If you’re a landlord generating rental income, you’ve probably heard of Making Tax Digital (MTD). It may not be mandatory for everyone yet, but it’s on the way — and it’s wise to prepare in advance.

Below is our Making Tax Digital Checklist for Landlords, along with a few notes and common oversights we see time and again.

1. Check if you’re affected by Making Tax Digital

If your total income from property or self-employment is over £50,000 a year (before expenses), you’ll need to comply from 6 April 2026.
If your income is above £30,000, your start date is April 2027.
If your income exceeds £20,000, you’ll need to comply later, from April 2028.
If your income is below those thresholds, you’re not required to switch yet — though you can join early.

Quick Tip: Work out your total property income before expenses and see where you fall. If you’re close to the limit, prepare as if you already need to comply. It’ll save you a rush later.

2. Choose and set up compatible software

Under MTD, you must keep digital records and submit your updates using software approved by HM Revenue & Customs (HMRC).

If you’re unsure which software fits your needs, speak to your local Rosemary Bookkeeper. We offer complimentary consultations to help you determine which MTD-compatible software is best suited for managing your property income and expenses.

Quick Tip: Still using spreadsheets or paper rent records? Now’s the time to switch. Getting accustomed to software before it becomes mandatory makes things far easier when deadlines arrive.

3. Keep your property records digital and organised

This goes beyond basic bookkeeping. Landlords within MTD’s scope must store their income and expense records digitally, not just on paper.

Key items to include:

  • All rental income, letting fees, and allowable expenses are recorded digitally.
  • Check that your current system or cloud software is MTD-compatible.
  • If you’re using both paper and digital systems, consider transitioning to a fully digital setup.
  • Keep your records ready for quarterly submissions once the rules apply.

Quick Tip: Many landlords wait until year-end to catch up. Don’t. Doing it quarterly not only keeps you compliant but also helps you track profits and taxes more easily. Your local Rosemary Bookkeeper can help you set this up properly.

4. Sign up (or prepare to sign up) with HMRC

When you meet the MTD threshold, you’ll need to register for MTD for Income Tax through your software or agent rather than directly via the old HMRC portal.

Before signing up, check you have:

  • Your National Insurance number.
  • Your business or property start date (if applicable).
  • Software linked to HMRC.
  • An agent or bookkeeper who’s also ready for MTD.

Quick Tip: Rosemary Bookkeeping can manage this process for you. We’re fully equipped for MTD and can even handle your HMRC Gateway setup as part of our support.

5. Prepare for quarterly updates and the final declaration

Instead of filing a single annual Self Assessment, you’ll send quarterly updates of your property income and expenses under MTD. Then, after the tax year ends, you’ll file a final declaration to confirm figures.

Example quarterly deadlines:

  • 6 April–5 July: due 7 August
  • 6 July–5 October: due 7 November
  • 6 October–5 January: due 7 February
  • 6 January–5 April: due 7 May
    Final declaration: 31 January following the end of the tax year.

Quick Tip: Think of these updates as regular check-ins rather than admin chores. They give you a clearer view of your finances and cash flow. And with a Rosemary Bookkeeper, they’ll happen smoothly every quarter.

6. Check if you qualify for any exemptions

Some landlords may be exempt, though it’s rare. Possible exemptions include:

  • If it’s “not reasonably practicable” for you to keep digital records (for example, due to disability or location).
  • If your total income is below the threshold.

Quick Tip: You’ll need to apply if you believe you qualify. But try not to see that as an easy way out. It’s better to get digital-ready now, even if you’re not yet required to switch. We can explain what counts as an exemption if you’re unsure.

7. Review your bookkeeping now and tidy up old records

Even if your start date is a year or two away, you’ll thank yourself later for getting ahead.

Ask yourself:

  • Do you store rental income and receipts digitally?
  • Are your property expenses recorded and categorised correctly?
  • Is your bookkeeping up to date?
  • Do you know how to use your software confidently?

Quick Tip: If you answered “no” to a few of those, it’s time to act. Cleaning up records now saves headaches later.

Take a moment to think about it. Many landlords assume MTD doesn’t apply to them yet — and maybe not this year, but it will. A last-minute scramble rarely ends well. One misplaced invoice or late submission can cost you time and money.

Treat this as preparation, not panic. And if you’d like help, your local Rosemary Bookkeeper can walk you through each step, set up your software, and make sure you’re ready for Making Tax Digital with confidence.

Find your nearest Rosemary Bookkeeper today.

Making Tax Digital Checklist for Sole Traders

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If you’re operating your own business as a sole trader, you’re likely familiar with Making Tax Digital (MTD).

While it may still seem somewhat abstract, it’s essential to recognise that it’s on the way, and it’s better to prepare now rather than waiting until the last minute.

Below is our ‘Making Tax Digital Checklist for Sole Traders’, along with some commentary and common oversights that people often miss along the way.

1. Check if you’re affected by Making Tax Digital

  • If your total income from self-employment or property exceeds £50,000 in a year (before expenses), you will need to comply starting from 6 April 2026.
  • If your income is above £30,000, you’ll need to comply from April 2027.
  • If your income exceeds £20,000, the requirement will take effect later, in April 2028.
  • If your income falls below those thresholds, you are not required to switch yet, but you can choose to sign up early.

Quick Tip: Determine your gross income now (before expenses) and identify your tax bracket. Don’t assume you’ll stay under the limit. If you’re close, act as if the rule applies to you now.

2. Choose and set up compatible software

One of the significant changes under MTD is that you must use software recognised by HM Revenue & Customs (HMRC) to maintain digital records and submit updates.

Speaking to your local Rosemary Bookkeeper is the best cause of action here. A free consultation will give you all the information you need to help you decide which software is the best fit for your business.

Quick tip: If you’re still using spreadsheets or paper records, consider making the switch now. You’ll have more time to familiarise yourself before the compliance deadline arrives.

3. Make sure your records are digital and organised

This is more than just bookkeeping online. If you’re in scope (or just out), you must keep your business records in a digital format rather than solely on paper.

Key items to cover:

  • All details regarding business income and expenses must be submitted in digital format.
  • If you currently use cloud accounting software, ensure it is compatible with Making Tax Digital (MTD).
  • If you use both paper and digital formats, you’ll need to transition to a fully digital system for the appropriate records.
  • Prepare your bookkeeping so that it is ready for quarterly submissions once the requirement starts.

Quick Tip: We understand that bookkeeping may not be your favourite task, but handling it early reduces stress later and allows you to identify issues, such as missing invoices or forgotten receipts, when you still have time to address them. Our local Rosemary Bookkeepers are on hand to help! 

4. Sign up (or prepare to sign up) with HMRC

If you meet the obligation threshold, you must sign up for MTD for Income Tax through your software or agent, instead of the old method, directly with HMRC.

Things to check before or during sign-up:

  • Your National Insurance number is available.
  • Your business start date (if applicable) is known.
  • You have the right software and it’s linked to HMRC.
  • If you are using an agent or bookkeeper, ensure they are prepared for MTD. Agents must also be ready.

Quick Tip: At Rosemary Bookkeeping, we are fully equipped to support with Making Tax Digital and are ready to assist you with your bookkeeping needs. We can also offer a hassle-free, end-to-end solution by managing your HRMC gateway too. Speak to your local Rosemary Bookkeeper for more information. 

5. Plan for quarterly updates and the end-of-year final declaration

One of the most significant changes is that instead of submitting one annual tax return for your business income, under MTD for Income Tax, you will instead send quarterly updates of your income and expenses, along with a final declaration after the year ends.

Important deadlines (example) for those in scope:

  • Submit your income and expense summary for the period from April 6 to July 5 by August 7.

  • The deadlines for the other quarters follow a similar pattern: November 7, February 7, and May 7.

  • The final declaration must be submitted by January 31 of the year following the end of the tax year.

Quick Tip: If you view change as a consistent flow instead of a sprint, you’ll be better prepared. This approach also provides a clearer understanding of your tax liability earlier, aiding in cash flow planning. By choosing a Rosemary Bookkeeper- we support you throughout the year so these quarterly updates happen like clock-work. 

6. Review if any exemptions might apply

There are a few limited cases where you might be exempt from this requirement, such as if you are digitally excluded.

Check whether:

  • It is generally considered “not reasonably practicable” for you to use digital records, which is a very rare situation.
  • You currently fall below the required thresholds, so you are not yet subject to the mandate.

Quick Tip: If you believe you have an exemption, you’ll need to apply. But don’t rely on this – it shouldn’t become a procrastination excuse. Our Rosemary Bookkeepers are on hand to offer more advice on what is deemed as an exemption and what isn’t. 

7. Review your bookkeeping processes now and clean up historic records

Although the first mandate is 5 months or more away (depending on your income), it’s wise to get things in shape now.

Questions to ask yourself:

  • Are your invoices issued and stored digitally?
  • Do you scan and store expense receipts digitally?
  • Is your bookkeeping up to date (not months behind)?
  • Do you’ve a software system that you can use confidently?

Quick Tip: If you answer “no” to several of these, then treat them as tasks to clear. You’ll sleep better knowing you’re prepared.

Stop for a moment and reflect: many sole traders will think “it’s not relevant to me yet” – and in a sense, that’s true if your income is below the threshold. But waiting until the last minute is risky. A small oversight in your software choice, in record-keeping, or in understanding the quarterly deadlines could cost you.

Consider this a preparation project, not a panic. If you need assistance, Rosemary Bookkeeping is here to help: we can review your software and processes to ensure you’re ready for Making Tax Digital without any stress.

Find your nearest Rosemary Bookkeeper today.

 

Boost Your Financial Awareness: Digitalise Your Bookkeeping for Making Tax Digital

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Prepare for Making Tax Digital Changes by digitalising your processes with the help of an expert bookkeeper.

If you’re a small business owner, sole trader or landlord, you’ve probably heard plenty of rumblings about the imminent and non-negotiable changes surrounding Making Tax Digital.

While, on the face of it, it does seem scary when words like “compliance” and “tax” are being wielded by HMRC, it doesn’t have to be.

In this blog post, our experts break down Making Tax Digital and what you need to do in order to be prepared for compliance when the time comes.

What is Making Tax Digital?

Despite the name, Making Tax Digital (or MTD) is not about tax. It’s about bookkeeping.

The government-led initiative centres on moving UK taxpayers’ records from spreadsheets and paper to a fully digitalised system. Introduced in April 2019, it has already gone through a few phases and currently applies to VAT-registered businesses. This is all set to change, however.

As of April 2026, MTD will be applied to Income Tax records for self-employed individuals and landlords with an income of over £50,000, which will require three key changes:

  1. Digital Record-Keeping: All transactions (income and outcome) must be kept digitally in an HMRC-approved software.
  2. Quarterly updates: Single annual returns are a thing of the past. Now, you must send quarterly updates on income and expenditure using an MTD-compliant software.
  3. Final Declaration: Once you’ve submitted all four quarterly updates in one year, you need to finalise your annualised income with a final declaration.

For those affected, MTD isn’t a tax change, but the mandating of digitalised bookkeeping using compliant software.

How a bookkeeper can help with MTD

No matter your threshold or when you’re affected, if you’re worried about the incoming changes to MTD for Income Tax, a bookkeeper can help.

The best way to keep your MTD experience stress-free is to get ahead of the changes by working with an expert bookkeeper to help make the transition to bookkeeping software.

Choosing the right software for you can be a lot to consider, but with Rosemary Bookkeeping, it doesn’t have to be hard. As accredited experts and approved partners with many leading MTD-compliant software like Xero, QuickBooks, Sage, FreeAgent and more, a Rosemary Bookkeeper can help you understand which software will be the best fit for you, get set up and transition to digital in time for the changes.

Or, to completely remove the stress from the equation, you can opt to outsource your bookkeeping to our experts completely, safe in the knowledge that we’ll ensure you stay compliant with MTD and other compliance requirements like AML, as well as keeping your books neat, correct and accounted for.

Want help with your bookkeeping?

If you’d benefit from expert advice, outsourcing and support in time to comply with the upcoming changes for MTD, contact your nearest Rosemary Bookkeeper today for a free, no-obligation quotation on a range of professional bookkeeping services.

Six ways a bookkeeper can help an online retailer

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The value of a bookkeeper to online retailers and sellers.

It’s fair to say that nowadays many people are well-versed in buying products and services online. With a massive shift in consumer behaviour over the last few years, the UK now boasts the third-largest e-commerce market globally, with a substantial portion of retail sales online. In fact, by 2023, nearly 60 million people in the UK were e-commerce users, and this number is projected to continue to grow.

For online sellers or businesses that sell products or services through the internet using digital platforms, websites, or apps, from small independent entrepreneurs on Etsy or eBay to large companies operating full-scale e-commerce websites like Amazon or Shopify stores, there can be great value in employing the help of a dedicated bookkeeper.

In this blog post, we examine the services offered by bookkeeping professionals that benefit sellers in digital spaces and six ways a bookkeeper can help an online retailer.

  1. Daily Financial Tracking

For any business, having a good oversight of your daily incomings and outgoings is of great benefit. Particularly for online sellers, where transactions aren’t completed physically with cold, hard cash, keeping track of your expenses is vital.

With a bookkeeper, you maintain daily visibility of your expenditure, helping you to prioritise your spending, track your results, and assess changes you need to make to achieve your goals and create the financial future you want.

Beyond the day-to-day, it also enables you to be forward-thinking and prepare for the future by facilitating the construction of an emergency fund, giving you a cushion to fall back on during unexpected twists and turns in your business journey.

  1. Sales Tax Compliance

For online sellers, compliance is essential. However, it can also be complex. With the help of a bookkeeper, online retailers can maintain consistent compliance with changing legislation and requirements for sales tax, like VAT and other charges that may be incurred on their online orders.

  1. Managing Cash Flow

Staying out of the red is a universal goal for all businesses, as naturally, everyone wants to avoid cash flow problems. However, due to their size and access (or often lack thereof) to financial resources, SMEs are typically disproportionately affected by negative cash flow.

While bigger businesses may have funds allowing for a stopgap between late payments, smaller businesses, like many independent online sellers, are more reliant on their projected monthly income. The help of a bookkeeper can also support you in securing finance, attracting investors, negotiating with suppliers and winning new business by achieving a good business credit rating through maintaining good cash flow.

  1. Tax-ready Financials

A huge event for all businesses in the UK is the regular dates in the financial calendar by which you must have your business’s financials ready for tax return, particularly the infamous January Self-Assessment tax returns.

As bookkeepers, experts like those across the nation at Rosemary Bookkeeping can help online sellers prepare and get ahead of these busy and mentally taxing dates by preparing a Balance Sheet and Profit and Loss report, so your financials are tax return ready and then prepare said tax return from those financial reports, so you don’t have to worry about the complex and mentally draining process yourself.

Beyond this, they can organise your financial information and bits and pieces like receipts, tax documents, gather all your business expenses and ensure they are all in one place, review your invoices and send reminders to your clients and clients to further improve your cash flow.

This can also include…

  1. Reconciliation

Online retailers can utilise bookkeeping experts to ensure their finances are all joined up. With the support of a bookkeeper, online retailers can easily navigate the final process of reconciling their bank statements and compare statements to ensure all their transactions are accurate and accounted for.

  1. Software set up

Particularly as legislation like Making Tax Digital come into force across the UK, becoming literate in online accounting software is essential for business owners like online sellers.

Bookkeeping professionals like Rosemary Bookkeeping are experts in many different software across the financial world, from Xero and Intuit QuickBooks to Sage, FreeAgent and more. So, if getting set up on software in time for MTD deadlines and to streamline your accounting processes for your online business seems like a struggle, your local bookkeeper should be your next call.

Need help with your bookkeeping?

With many benefits to using a bookkeeper to support your online business, take the stress out of your business operations by leaving your bookkeeping to the professionals.

To learn more about our services and how Rosemary Bookkeeping can help you, call 0345 862 0072 or find your nearest Rosemary Bookkeeper today.

Choosing the right accounting software for your business

How to choose the best accounting software for your business.

For any small business owner, keeping track of your incomings & outgoings is one of your most vital tasks.

Due to recent government initiatives around MTD (or Making Tax Digital), having a digital record of your finances is essential. Thankfully, there is a wide range of online software options available. All of which claim to offer you the best possible service.

Some advertise more often and are more well-known, like QuickBooks and Xero. At Rosemary Bookkeeping, we know businesses are as varied and unique as the people who run them.

What works for one person’s business doesn’t work the same for another. To make the best move for your business, you need to look at what each service offers and figure out what works for you. That’s why we’ve compiled a list of factors you should consider when selecting your accounting software.

What are the costs?

One of the main things to think about is, of course, price. And the price for accounting software can vary considerably. There are packages at the lower end of the price range, but these will often be a more basic package. Think about your business requirements now and in the future. Will a basic package be enough, or will you need more features further down the line?

Usability

The size and structure of your business will affect how many users there will be accessing your accounting software. Do more users mean more cost? Is it scalable if needed later? Do you want your accounting software to be installed on a particular desktop, for example?

Something like this considerably affects your pool of available choices, as most systems are now cloud-based. Especially with the new MTD regulations, we recommend a cloud-based system that you can access anywhere, without limiting your number of users.

However, if your preference is a desktop, there are still some good options such as the free, open-source, desktop software GnuCash.

Features

Work out what you need from the accounting software and what you need it to do. Do you need both accounts receivable and accounts payable tools? Which reports do you need it to generate? Do you need it to track inventory? Do you need it to include ancillary services, like time tracking, project management, and payroll?

Which to choose?

Of course, as bookkeepers ourselves, we have our preferences when it comes to software.

We work with all sorts of platforms and packages but there are a few we see time and time again.

These are:

Xero

Widely acknowledged as one of the top pieces of accounting and bookkeeping software – especially if you’re working on a Mac.

Xero is great if you’re just starting, or if you need your accounting to be straightforward. Another plus of Xero is that it is designed to grow as your business does.

We like that it’s affordable, easy to use, offers a ton of add-on features and integrates with hundreds of third-party business solutions, many of which you likely already use.

There is also a 24-hour email and live chat support function, meaning there’s always someone there to help you whenever you need it.

FreeAgent

Unlike many bookkeeping and accounting software products that limit your transactions, unless you purchase a more expensive package, FreeAgent supports unlimited users, clients, invoices and transactions for one monthly price.

Like many of its competitors, it is cloud-based software, but it also comes with a built-in project management feature.

These make it ideal for keeping track of billable hours and expenses. As a FreeAgent partner, we recommend it for freelancers, consultants and other project-based businesses.

QuickBooks

QuickBooks is another of the most popular accounting software packages out there (and for good reason).

QuickBooks works for all types of small businesses, with three different small business plans to choose from, plus a separate plan for the self-employed, freelancers and contractors: it’s got something for everyone.

Both new start-up businesses and bigger, established businesses have benefitted from its range of features, which cover basic bookkeeping to advanced accounting and business analytics.

Sage

Sage is one of the bigger brands, and it’s been around a lot longer than most.

Sage Business Cloud Accounting has two plans for small business owners, starting with invoicing, expense management and reporting, as well as the creation of quotes, estimates, tracking, and inventory management.

It’s most popular with retail-based businesses due to its ability to integrate with POS systems.

Sage also appeals to businesses with large finance departments thanks to its support for multiple users and payroll systems.

How Rosemary Bookkeeping helps your business

Each online bookkeeping aid offers something different, with both strengths and weaknesses. This might make one a great fit for how you run your business or, by the same token, a terrible fit.

At Rosemary Bookkeeping, we work with you. We know that every business is different, and our bespoke service reflects this. By regularly consulting your local Rosemary bookkeeper, you’ll be able to receive support specially tailored to you and your business, and we can take care of your bookkeeping for you. From helping you choose the right software to use, software supply, training and data migration to a complete outsourced bookkeeping service – we can help.

Whether you’re just starting, or looking to hire a bookkeeper to support your growth, we’d love to help you on your journey to becoming the best business you can be. To take your first step towards stress-free bookkeeping, find your nearest Rosemary Bookkeeping branch to schedule a free, no-obligation consultation today.

Rosemary Bookkeeping North Kent and Isle of Sheppey Awarded for Business Growth

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Grant Dye from Rosemary Bookkeeping North Kent and Isle of Sheppey picked up a prestigious growth award at this year’s Rosemary Bookkeeping Spring Forum.

Rosemary Bookkeeping’s annual spring forum is a red-letter day for our bookkeepers up and down the UK, where we come together to network, learn, grow, and catch up, too!

The day also saw some business owners awarded for their successes in 2024.

This included Grant Dye from Rosemary Bookkeeping North Kent and the Isle of Sheppey, who won an award for significant business growth in the last year.

In 2024, Grant made key strides in his business development through providing consistently excellent services to his clients through a range of vital services, including help using software like Xero and QuickBooks to work towards targets around Making Tax Digital and meeting crucial deadlines in the bookkeeping calendar. Delivering a valued service to his clients across the region has allowed Grant to exceed targets for his business.

Congratulations!

Bobby Garland, Brand Leader for Rosemary Bookkeeping, said:

“Grant’s commitment and steady performance have seen him hit the £50k milestone, a testament to his professionalism and client dedication.”

Need an award-winning bookkeeper?

If you’re in North Kent, Isle of Sheppey and the surrounding areas and could benefit from professional bookkeeping services from a local expert, contact Grant on 07970 696391 or find your nearest Rosemary Bookkeeping business to see how we can help you today.

Rosemary Bookkeeping Brand Leader talks the future of bookkeeping

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Rosemary Bookkeeping Brand Leader Bobby Garland sits down with Aaron Patrick from Ask the Accountant. 

Recently, Bobby Garland, Brand Leader for Rosemary Bookkeeping across the UK, featured on Ask the Accountant while visiting the Finance, Accounting and Bookkeeping Show (FAB).

Alongside playing a game of (Not) Top Trumps (see full video), the two dive into discussions of the best ways to capitalise on networking events like FAB, Bobby’s plans for Rosemary, and the evolution of the bookkeeping industry.

In this blog post, we’ve transcribed the highlights of their conversation, but you can watch the full interview here.

(Note: Some quotes have been slightly tweaked for clarity and ease of reading.)

Aaron: Bobby, first of all, tell people who you are, why you’re here and what you want to talk about.

Bobby: “My name is Bobby Garland. I am the Brand Leader for Rosemary Bookkeeping. I’m relatively new to the accounting industry. I’m just a couple of years in, but I have lots of experience working with SMBs on business growth and collaboration plans and things like that.”

And relatively new in this new role as well?

“Yeah, my role at Rosemary Bookkeeping started in January, and it’s a franchise network. I’m the Brand Leader, so I help support the whole network and take it in the direction I think will benefit the whole accounting community.”

So, Bobby, what are you looking forward to on day two of FAB?

“I want to spend a bit more time on the HMRC stand. When we’re looking at things like Making Tax Digital coming into fruition, I feel like everybody’s got over this paranoia of ‘Will it, won’t it?’ We’re in the home run now, they’re sending letters out. I feel like we’re locked in. So, I think it’s their time to shine. Some of their speakers have been really, really good, really engaging. I feel like they’ve brought their A game this year.”

How do you ensure, from any event, that you act on it? What are your key tips?

“Step one is definitely to learn something. I always look at the speakers and pick out a non-negotiable. And then I’ll write something down: just one thing to do the next day. Whether that’s rolling something out to my network of bookkeepers, or going and having a demo booked in.”

“I’ve booked three demos yesterday, just from walking around. You’ve got new players in the game, like Mimo. I was talking to them, and was like, I’m just gonna book a demo. It’s great chatting to them here. But sitting down and having dedicated time is better. If you do it while you are here, you’ll commit to it. My meeting with them is next week, and I’ll attend that and get something from it. My diary next week is jammed, with just demos. I think that’s how you’re gonna get something out of these things: committing to something later date.”

You are in a unique position where you’ve got twenty different bookkeepers, and that’s growing, right? You’ve got X amount of differing pain points to solve. What are the key pain points you are looking to fix?

“Yeah, so one of the things that I think I’m passionate about with the Rosemary Bookkeeping Network is flexibility. Because with new or existing franchise partners, they’re all in different places. You’ve got some who are just one-man operations and have been going for a year. You’ve got others who have been going for 15 years and have employees and a couple of offices, so sometimes there isn’t a one-size-fits-all solution, and if we’re rolling something out across the network, I’ve got to make sure that it’s fit for purpose for everybody”.

“So, I really love something scalable, that can be relatively inexpensive to start with, but is happy to grow. And those sorts of solutions are ones that I keep an eye out for. Because they’ll benefit everybody, and that’s ultimately one of the priorities of my job: servicing and supporting everybody in the network equally.”

I completely understand that you want to be flexible and make sure it’s right for the purpose, but how do you keep on top of that? What’s your pro tip? Because a tech stack, when it’s just one for each category, is hard work. So, trying to keep it on top of all of that, what’s your secret there?

“I’ve sat in a lot of demos the last couple of weeks. Starting in the role in January, that’s something that I’ve prioritised because when I worked at QuickBooks and worked with accountants on software and even before that, working in marketing and business development roles, one of the things that I was always keen on was to be a functional expert.”

“I’m not a bookkeeper. I’ve got no qualifications around that, cards on the table, but I could use QuickBooks. And I felt that that was important when working with my accountants then. And this is no different, working with my Rosemary bookkeepers, I’m not going to be able to deal with the bookkeeping, but it’s important I understand how it works. We’re looking at AML software at the moment, getting under the skin of that, and I love it because I love learning about new stuff, new tech, new everything.”

It’s problem-solving.

“Yeah. I think you get far more out of it if you immerse yourself in it. Sometimes I can go a little down the rabbit hole, but that functional learning is key. I don’t want to just be somebody who’s talking about it. I want to be able to pick it up and show somebody. My aim is that all of my bookkeepers, for example, would be able to use it a million times better than me, but at the starting point, I can explain it and show them.”

“Even though I’m not a bookkeeper. I’m a functional expert to a degree. Don’t trust me to do your books though! [laughs].”

But credit to you, because we’ve done videos and product demos and all sorts together in the past, and one thing I admire about you is that you get your hands dirty, get involved in the product and kick the tires.

You were the first to say, ‘This doesn’t do this, have I missed something here?’ Because you were questioning, am I the problem, or is it the software? And I think that’s something that, in your role, is really important.

“I get a bit passionate because I see something, and it doesn’t quite do what I want it to, and I’m like, ‘Well, why doesn’t it do that? And should it?’ And then you go round in circles, and you’ve got to think about everybody in many different positions. But for me, immersing in it is the only way you’d uncover those issues.”

“And credit to software companies. It is a challenge because they’re not bookkeepers either. So, some of the best innovations come from people in the industry using the software. You can see some of the software created by accountants and bookkeepers, they stand out because they’re using it day-to-day.”

“And I think leveraging that information, whatever software company you are, is essential to success and leveraging the experience so people who will use it every day.”

We all love the big shinies, the big new feature releases. We were talking off air, weren’t we? Apron is releasing the new–

“The new card, yeah.”

We love that. And that’s an amazing thing to celebrate. But actually, some of the best work they’ve done lately is those little, tiny workflow changes, which are game-changing for the people using and relying on it daily.

“The number of times I’ve had a bookkeeper, or an accountant come up to me and they’re like, ‘Oh my God, do you know what my favourite feature is?’ And they say it, and I’m like, ‘Does it do that? Show me.’ And sometimes we miss that, especially those of us who aren’t bookkeepers or accountants, and we need to listen to that sort of feedback, so we know what the priorities are. Otherwise, how else are we going to learn?”

“But that happens all the time. I love it, though, because you learn something new. The best bit is that an accountant or bookkeeper tells me that, and then I go and find another accountant or bookkeeper, and I go, ‘I tell you what, have you seen this?’ And they’re like, ‘No. Oh my God, that’s amazing.’ I’m like,’ Yeah, I found that.’ [laughs]”

So, obviously, you’re passionate about this industry. What do you love most about it?

“I’ve worked in lots of industries. When I’ve done marketing, I worked with SMBs across all different industry verticals. Now that I only work within the accounting industry, the thing I notice is that it’s so collaborative. Everybody gets on, and I think that’s because it’s such a necessary service that there’s obviously competition, but accountants are far more likely to sit down and help each other than ignore each other. If one’s got a problem – and I saw it outside when we were queuing to get in, and one accountant was chatting to another about year end and how busy they were in January and then one’s telling the other like, ‘I’ve done this, you should think about that’ – and I think that’s brilliant.”

“Collaboration and partnership, in my career, are big priorities. I read it the other day, and you must have heard this: ‘If you want to go fast, go alone. If you want to go far, go together.’ And I love that. That is ingrained in me as a person. And I see that all the time in this industry, above other industries, and I’ve worked in a lot of others.”

And there was a chance that you could have left the industry, and you decided this is the industry you want to stay in. So, that must say something.

“Definitely. And I’ve been dedicated to this industry for, in my eyes, a relatively short period, two or three years now. But I’ve made so many connections and friends. Even just coming here today, the number of people I’ve seen who stopped me to say hello, I’ve really loved keeping those connections going.”

So, that’s what you love about the industry. What would you change about the industry?

“That’s… that’s a tough one. I think pace. I do think that accountants and bookkeepers, rightly so, are relatively risk-averse. And I think that’s fair to say, and that’s not a detriment to any of them, but they should be. I’d want my accountant to be risk-averse.”

“But I think sometimes when it comes to things like Making Tax Digital for income tax coming in and new software and efficiencies, we can err strongly on the side of caution. And I’m not saying throw the baby out with the bath water, but it would be good if we had more risk-takers, to give it a go and see it through. But it’s their business, so I get it. So many accountants are self-made, so I understand why they don’t.”

“In my time at QuickBooks and at Rosemary, working with my franchise partners, I want to be super supportive, so it doesn’t blow up in people’s faces. Nobody wants that. But try those little things, try something new. That’s the one bit of advice.”

Exactly, and it’s that disruptive mentality, isn’t it? Sometimes we feel like we shouldn’t disrupt. But that little bit of disruption won’t stop the whole industry, will it?

“Absolutely. And it doesn’t need to be changing everything.”

Little tiny steps.

“A hundred per cent. If you made a 1% change every day, that adds up. It is tiny, tiny steps. So, yes. That would be the thing. But I think that’s coming.”

“Even in the few years I’ve worked directly in the industry, you see a change. And I think it is a testament to guys like you who lead from the front. And you are seeing more people putting themselves out there, doing podcasts and talking and things like that.”

Sharing the knowledge, right?

“Yeah. Yeah, definitely. So, I think it is happening.”

If we got you a time machine, think about something you are using today. It could be an app, a piece of software, or a gadget. What piece of technology would you love to take back 12 months and say, ‘You should be using this now.’

“Chat GPT, I have doubled down on things like that in the last couple of months, and it has transformed my life. I think it’s such a useful assistant. It’s not replacing anything.”

It’s a brainstorming tool, isn’t it?

“I love, like I said earlier, collaboration and some of my best ideas come when chatting with someone, and they evolve in a conversation. But I work remotely, and the franchise partners I deal with are all over the UK. So, I’m not necessarily with someone every day. I don’t work in an office. So, Chat GPT is really helpful when I’m trying to brainstorm.”

I don’t know if you’ve seen some of the videos we’ve done on the training, but now it’s evolved to watching your screen and being contextualised on your screen, so you’re thinking about the training point of view, you have that app on the screen.

It’s telling you, ‘If I need to reconcile this or I need to do this, or I need to add this transaction,’ it can go, ‘Oh, go up here, click that. See this box here? Make sure you put it in there. No, no. I wouldn’t use that date. And it’s watching you do what you’re doing, giving that constant feedback. It is very, very, very scary, but very, very good.

“It’s terrifying. Don’t think about it too much.”

So, we’ve gone back 12 months, let’s go forward 12. How do you think AI is going to impact the accounting industry?

“I think the more and more it’s integrated, the more it’ll get used. Intuit Assist is a great example of that. You’ve got Jax with Xero, in the accounting world. Once they’re properly there, then I think that will accelerate everything.”

“I am slightly – not worried – excited and terrified of where all this will be in two years. So, it’s exciting times, and I think it’s in addition to your brain. It’s not instead of your brain.”

Well, that’s where we add value as bookkeepers and accountants, right?

“The other thing I think is massive about the accounting industry is that it isn’t about numbers. It’s about people.”

100%.

“It’s a people industry, and nothing’s going to change that. If you could spend more time with people, and AI is doing some of these monotonous things for you, it gives you time to have that coffee with your client that you couldn’t before, or go out to that networking event and meet new clients. Those are the things you want to do. I don’t know about you, but I love spending time with people; the more of that I can do, the better.”

Awesome. So, this is your opportunity. Plug, plug and plug away. And tell the people where they can find you and what you’re all about.

“Rosemary Bookkeeping is a franchise network. I’m the Brand Leader of it. What I’m looking to do with the brand is develop it so that we can partner with accountants. MTD for income tax is coming; accountants are going to need help. And I honestly believe bookkeepers are the answer. Ami Copeland talked about it at Engager Labs, collaboration is key. They’re not in competition with each other, so I’m looking for accountants who are looking for help that the Rosemary Bookkeeping network can help with, and we’re across the whole country.”

“I look after and know them all personally. I’m really excited about that, and hopefully working with some people I already know and maybe some new people as well. I’m really excited to be part of the network.”

It’s been great. Thank you for coming on.

“I really appreciate it. Thank you.”

Need help with your bookkeeping?

By contacting the professionals, you receive personal and expert support on all aspects of bookkeeping.

We love bookkeeping, but we know it’s not for everyone. So, leave the stress behind by leaving your books to the experts today.

Find your nearest Rosemary Bookkeeping business today to see how we can support you ahead of the new tax year.

What is Making Tax Digital?

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Everything you need to know about MTD and how having a bookkeeper helps.

Making Tax Digital (or MTD) is part of HMRC’s ongoing initiative that has been underway since April 2019 to digitalise the UK tax system.

So, when and how will MTD affect your business? And how should you go about paying it? In this blog post, the experts at Rosemary Bookkeeping have all the answers.

What is MTD?

MTD has two core components:

  1. Replacement of paper-based records and a requirement for businesses and organisations (including those with property-based incomes) to keep digital accounting records.
  2. Using compatible software to submit tax returns and updates to HMRC – The government will be removing their current online tax services when a business registers for MTD and will require businesses and organisations to use software compliant with their API (Application Program Interfaces) to submit relevant updates and returns to HMRC instead.

MTD Timeline

Making Tax Digital was initially scheduled to become mandatory for income tax in April 2024. However, in December 2022, the timeline for compliance was revised.

    • Starting from 6 April 2026, those with an annual gross income exceeding £50,000 from self-employment and property letting will be required to comply.
    • From 6 April 2027, the rules will apply to individuals with an annual gross income of over £30,000 but less than £50,000 from self-employment and property letting.
    • Lastly, from 6 April 2028, the compliance will extend to those earning between £20,000 and £30,000 from self-employment and property letting.

The changes and how they affect your business

To check if you are eligible or apply for exemption from MTD, you can find guidance on how to do so via the HMRC website. If you’re concerned about the impact of MTD on your business, you can read more about its effects here.

MTD’s benefits:

  • It can reduce or even eliminate paper-based or manual tax processes. This allows you greater accuracy in tax returns, reduces the time you spend on administration, and gives you more time to maximise your business opportunities, productivity and profitability.
  • In the case that you opt to use cloud-based software, you’ll be able to see in real-time what is happening in your books and have better control over your finances, allowing you to make up-to-date and well-informed business decisions.
  • Using compliant digital software means that submitting information to HMRC is far simpler and less stressful.
  • Some accounting software links directly with your bank account, further reducing the paperwork and time spent filing taxes.
  • Digital software provides you with real-time management information so you can see how your business is performing.

So, if you have not already done so, you need to start weighing your options for MTD compliant software.

How Rosemary Bookkeeping can help with Making Tax Digital

We understand that making the jump to digital can be scary and daunting. But it’s not as costly or difficult as it seems, especially with the help of an expert bookkeeping service like Rosemary Bookkeeping. The benefit of changing to MTD now is that everybody else has already had years of experience working with it.

With a professional bookkeeper from Rosemary Bookkeeping to help you, making your tax digital is a very simple process.

We have been operating MTD for VAT submissions since its inception in 2019 and know its processes inside and out. Going digital may be a scary prospect, but by using a bookkeeper, your tax may be going digital, but your bookkeeping experience isn’t. We will assist however you need to get accustomed to the software, or simply do the work for you and make the process of sending returns to HMRC straightforward. We will also send generated returns directly from the software so that you have a well-kept and organised backlog of your records.

The main drawback of digital services like Xero and QuickBooks is that they depend on your financial knowledge and ability to work through MTD yourself. Our bookkeeping experts are trained to work digitally using MTD compliant software like Xero and QuickBooks, and Sage, but are a real-life human presence that can reassure and guide you through the process, so you’re not going it alone.

As Rosemary Bookkeeping is well-versed in MTD and online services, we can also offer advice on which software would be best for you, and often offer competitive prices for software subscriptions.

Additionally, we also offer an online exchange of documents, so you’ll be able to upload photos or scans of documents so that we can process them on the bookkeeping software. We also use Apps like AutoEntry or Hubdoc, which not only attach documents directly to the record on the software but also automate some bookkeeping processes – saving you valuable time and money.

To start receiving expert help and advice from your local bookkeeping experts, find your nearest Rosemary Bookkeeping business today for your free, no-obligation quote.

MTD for the new tax year

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How a bookkeeper can help you manage MTD.

MTD (Making Tax Digital) is a government initiative to digitalise the UK tax system.

Introduced in 2019, developments at the beginning of the 2022 tax year saw MTD extend to include VAT for businesses.

With VAT return deadlines looming, many businesses have difficulty understanding MTD and its implications.

At Rosemary Bookkeeping, our experts are well-versed in online systems and financial processes.

That’s why we’re here to share everything you need to know about MTD for the new tax year.

Refresher: What is MTD?

MTD has two core components:

  1. Replacement of paper-based records

MTD requires businesses and organisations (including those with property-based incomes) to keep digital accounting records.

  1. Using compatible software to submit tax returns and updates to HMRC

The government will remove the current online tax services when businesses register for MTD.

They will require businesses and organisations to use software which is compliant with their API (Application Program Interfaces) to submit relevant updates and returns to HMRC.

MTD Timeline

  • 1st April 2019: MTD has been in place since this date for the majority of VAT-registered businesses above the tax threshold of £85’000+ turnover. These included partnerships, sole traders, limited companies, non-UK businesses registered for UK VAT, and charities and trusts.
  • 1st October 2019: There was a six-month deferred start date to support more complex businesses.
  • 1st April 2022: MTD became mandatory for all VAT-registered businesses and organisations.

Upcoming Implementations

Making Tax Digital was initially scheduled to become mandatory for income tax in April 2024. However, in December 2022, the timeline for compliance was revised.

  • Starting from 6 April 2026, those with an annual gross income exceeding £50,000 from self-employment and property letting will be required to comply.
  • From 6 April 2027, the rules will apply to individuals with an annual gross income of over £30,000 but less than £50,000 from self-employment and property letting.
  • Lastly, from 6 April 2028, the compliance will extend to those earning between £20,000 and £30,000 from self-employment and property letting.

Eligibility for MTD

Even if you aren’t legally obligated, you have the option to voluntarily follow the MTD rules if you choose to do so.

To identify individuals who need to comply with the MTD regulations starting in April 2026, HMRC will first review all self-assessment tax returns submitted for the 2024/25 tax year.

Consequently, if you file your tax return for that year by the deadline of 31 January 2026 and your income from self-employment and/or rental income surpasses £50,000, you can expect to receive a notification letter from HMRC in February 2026 informing you of your obligation to comply with MTD beginning 6 April 2026.

The coming changes and how they affect your business

MTD legislation already means you must have completed your ITSA through MTD-compatible software.

If you were not already doing so, you’re now required to keep digital tax records and submit this information to HMRC through an MTD-compatible software when conducting your self-assessment tax returns.

Exceptions

If your business has received an MTD exemption, it will still be in effect.

These can be caused by factors such as:

  • Age, a disability or where you live
  • You object to using computers on religious grounds
  • Any other reason why it’s not reasonable or practical

To check if you are eligible or apply for exemption from MTD, you can find guidance on how to do so via the HMRC website.

If you’re concerned about the impact of MTD on your business, you can read more about its effects here.

MTD’s benefits:

  • It can reduce or even eliminate paper-based or manual tax processes. This allows you greater accuracy in tax returns and reduces time spent on administration. It also gives you more time to maximise your business opportunities, productivity and profitability.
  • If you opt to use cloud-based software, you’ll see in real-time what is happening in your books and have better control over your finances, allowing you to stay up-to-date and make informed business decisions.
  • Using compliant digital software means submitting information to HMRC is far simpler and less stressful.
  • Some accounting software links directly to your bank account. Further reducing the ‘paperwork’ and time spent filing taxes.
  • Digital software provides you with real-time management information so you can see how your business is performing.

So, if you have not already done so, you need to start weighing your options for MTD-compliant software.

Why now?

The new financial year is the best time to reset how you manage your books.

This period is notably less disruptive, as things are changing already.

By introducing new systems to work smarter, you keep your business information secure and make things easier to manage going forward. 

How Rosemary Bookkeeping can help

We understand that making the jump to digital can be scary and daunting.

But, it’s not as bad as it seems – especially with the help of an expert bookkeeping service like Rosemary Bookkeeping.

Expertise

The benefit of changing to MTD is that we’ve had around four years of experience working with it.

With a professional bookkeeper from Rosemary Bookkeeping to help you, making your tax digital is simple.

We have been operating MTD for VAT submissions since its inception in 2019 and know its processes inside and out.

Going digital may be a scary prospect. Using a bookkeeper, your tax may be digital, but your bookkeeping experience isn’t.

Software Support

We will assist if you need to acclimate to the software or do the work for you.

We also send generated returns directly from the software, so you have a well-kept and organised backlog of your records.

Our bookkeeping experts are trained to work digitally using MTD-compliant software like Xero, QuickBooks and Sage and are a real-life human presence that can reassure and guide you through the process, so you’re not going it alone.

As Rosemary Bookkeeping is well-versed in MTD and online services, we can advise which software would be best for you and often offer competitive prices for software subscriptions.

Additionally, we offer an online exchange of documents, so you’ll be able to upload photos or scans of documents so that we can process them on the bookkeeping software.

We also use Apps like AutoEntry or Hubdoc, which not only attach documents directly to the record on the software but also automate some bookkeeping processes – saving you valuable time and money.

Struggling with your bookkeeping?

The new tax year is a busy and stressful time, particularly hot on the heels of January Self-Assessment tax return deadlines.

We also know that keeping track of your finances isn’t easy, especially when also trying to figure out MTD legislation and new software.

If you had a stressful time sorting your ITSA, the new tax year that swiftly follows may be a real cause for concern.

By contacting the professionals, you receive personal and expert support on all aspects of bookkeeping.

We love bookkeeping, but we know it’s not for everyone. So, leave the stress behind by leaving your books to the experts today.

Find your nearest Rosemary Bookkeeping business today to see how we can support you ahead of the new tax year.

The benefits of outsourcing your bookkeeping as a small business owner

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Six ways outsourcing your bookkeeping can help your small business to flourish.

Small business owners wear many hats and take on multiple responsibilities.

This often includes doing your own bookkeeping above and beyond any sales, marketing and operational activities you do daily.

This can be time-consuming and complicated, taking away time and resources better spent on growing your business.

Outsourcing your bookkeeping means hiring an external bookkeeper or accounting firm to handle your financial records and transactions.

At Rosemary Bookkeeping, we deliver local bookkeeping services backed by the expertise of a national brand.

You benefit from the support of someone who knows your area and community, bolstered by a UK-wide network of bookkeeping experts.

In this blog post, we’re discussing the benefits of outsourcing bookkeeping for your small business.

  1. Saving you time

Outsourcing bookkeeping frees up your time so you can focus on running your business.

You needn’t worry about managing financial records or performing time-consuming tasks like data entry, reconciling bank statements or generating reports.

  1. Access to expertise

Professional bookkeepers have know-how and experience that are uncommon for the average person.

They are familiar with financial statements, tax laws and regulations like MTD and can offer valuable financial advice from a place of understanding and expertise.

  1. Cost saving

Outsourcing bookkeeping can be more cost-effective than hiring an in-house bookkeeper or accounting team.

You can save money on salaries, benefits, and training costs.

As such, outsourcing generally saves between 30% and 75% of your current costs.

  1. Scalability

Outsourced bookkeeping services can scale to meet the needs of your growing business.

You can adjust the level of service you need as your business expands.

  1. Accuracy

Professional bookkeepers are less likely to make errors compared to non-professional bookkeepers.

This can help you avoid costly mistakes and penalties.

  1. Security

Outsourced bookkeeping services can offer greater security for your financial data.

They use secure online portals to share financial information and have security measures to prevent data breaches.

Outsource your books with Rosemary Bookkeeping

Outsourcing bookkeeping is an excellent option for small business owners who want to save time and money while ensuring accurate financial records.

By hiring an external bookkeeper or accounting firm, you can benefit from their expertise, reduce costs, and scale services as needed.

When outsourcing bookkeeping for your small business, choose a reputable provider with a proven track record of success, like Rosemary Bookkeeping.

Your nearest Rosemary Bookkeeping expert can eliminate the stress and hassle of managing your books.

Through meetings scheduled at your discretion, receive 1-to-1 advice from a qualified professional who understands you, your business, and your community.

Take the hassle out of your business and give yourself the time to focus on what matters with Rosemary Bookkeeping.

Call 0345 862 0072 to see how we can help you today.

Say hello to the new Rosemary Bookkeeping Business in Croydon

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Meet Dean Kokshun, the bookkeeping expert opening a new Rosemary Bookkeeping business in Croydon.

In need of a bookkeeper in Croydon?

Rosemary Bookkeeping has expanded its expert bookkeeping services into Croydon and the surrounding areas for the first time under the expert supervision of Dean Kokshun.

Dean’s expertise in bookkeeping is unparalleled.

He holds multiple prestigious qualifications and decades of experience supporting him in helping business owners with their bookkeeping needs.

Who is Dean Kokshun?

Dean’s journey in accountancy began in 1985.

This began with him joining the bookkeeping and external audit departments of KPMG Mauritius – then known as Peat Marwick.

He then qualified with the ACCA in the UK in 1993.

Dean was later admitted as a member in 1996 and achieved fellowship (FCCA) status in 2001.

As a qualified accountant, he has held senior positions within small UK accountancy practices, accumulating 30 years of experience.

Throughout his career, Dean has excelled in external auditing of small to medium-sized entities, financial reporting, and management reporting.

This has taken him across diverse industry sectors, including retail, services, manufacturing, hospitality, and investment.

Outside of his professional life, family caring duties and social commitments, Dean loves to relax and recharge by spending time out in nature.

Whether it is” a stroll in the local parks and gardens, exploring the countryside or enjoying the serenity of the coastline,” Dean has “a deep fascination with the beauty of the natural world and appreciates the simplicity and tranquillity that nature offers.”

“I also enjoy various individual and team sports, but if I must pick one which I practice the most, it has to be badminton,” he says.

Expertise

Dean’s extensive background and experience in accountancy have also provided him with a comprehensive understanding of the intricacies of financial reporting and external auditing.

Moreover, having worked with businesses in various sectors and clients in the UK and EU, he has developed a versatile skill set in navigating different accounting systems and processes.

His expertise in preparing financial statements following the UK GAAP and conducting external audits for small to medium-sized companies has equally equipped him with “a keen eye for detail and a commitment to compliance,” he says.

This experience has provided Dean insight and directly informs his approach to providing professional bookkeeping services for local businesses in Croydon and its surrounding areas.

Bookkeeping in Croydon

Drawing on his deep familiarity with the London Borough of Croydon, where he has lived since 1987, Dean is uniquely positioned to understand the local business landscape.

His decision to enter the bookkeeping industry stems from his passion for numbers and problem-solving.

“With 30 years of experience at the senior level in accountancy practices, I want to leverage my skills to provide essential financial services to businesses in my local area, Dean says.”

“The bookkeeping industry allows me to combine my expertise with the opportunity to support businesses in maintaining accurate financial records, ultimately contributing to their business success,” he adds.

“My commitment to delivering excellence in bookkeeping services aims to provide local businesses in Croydon and its surrounding areas with the support they need with their books and records.”

Furthermore, with the introduction of Making Tax Digital (MTD) for Income Tax by HM Revenue and Customs (HMRC) from 6 April 2026, bookkeepers will play a crucial role in helping businesses navigate the new system as they will be responsible for maintaining accurate and up-to-date financial records, ensuring that the data is entered correctly into the MTD-compliant software, and submitting quarterly updates to HMRC.

Dean’s clients in Croydon can expect a comprehensive range of bespoke bookkeeping services tailored to their unique needs.

These services include:

  • Accurate financial record-keeping
  • Meticulous attention to detail in all aspects of bookkeeping
  • Preparing and submitting VAT and CIS returns
  • Timely preparation of periodic and annual management reports
  • Coordinating with accountants and external auditors
  • Providing reports and information to prepare (and audit) year-end financial statements and tax returns
  • Provide support with their books and records and assist and ensure compliance with filing obligations with HM Revenue and Customs.

The beginning of a beautiful friendship

Dean says his adaptable nature and passion for learning have prepared him to embrace his new business.

“I believe that my strong work ethic, effective communication skills, and dedication to finding solutions to complex problems will contribute to the success of the venture, ensuring that clients receive high-quality and tailored bookkeeping services,” he says.

“I’m excited to bring this wealth of expertise to my franchise business, eager to provide top-notch bookkeeping services to the local businesses in Croydon and its surrounding areas, helping business owners with their books, saving them time and money and allowing them to focus on the things they do best – like running their businesses.”

Dean’s aspirations for his business align with the opportunities presented by Croydon’s strategic development plan.

As the area undergoes urban regeneration and economic growth, Dean promises to be a key player in supporting businesses to thrive amidst these positive changes.

In line with the Croydon Council’s four-year business plan, he envisions expanding his portfolio of clients and contributing to the economic opportunities flourishing in the area.

“My commitment is to stay attuned to the evolving needs of the local business community, providing exceptional bookkeeping services and contributing to the economic vibrancy of Croydon and its surrounding areas.”

Yasmin Chaudhari, Commercial Marketing Manager for ServiceMaster Brands UK, says,

“We’re so excited to have Dean join the Rosemary Bookkeeping network as we expand our services to the local businesses of Croydon and surrounding areas.”

“Dean joins us with a wealth of experience in finance, and we wish Dean all the best with his new venture with Rosemary Bookkeeping.”

“For businesses based within Croydon looking for smarter ways to manage their books, maximise their investments and get the support they need to scale up their businesses, it’s your lucky day!”

Need a bookkeeper?

If you’re in Croydon and the surrounding area and need support on your bookkeeping, contact Dean on 0208 191 2958.

Or, nationwide, find your nearest Rosemary Bookkeeping business to see how we can help you today.

Rosemary Bookkeeping Tips and Tricks: A beginner’s guide for easy bookkeeping

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Our 10 tips to bookkeeping like a pro.

Bookkeeping can be confusing.

At Rosemary Bookkeeping, we know that better than anyone.

So, sometimes you might need a helping hand.

Here are some top bookkeeping tips from our experts that’ll make your bookkeeping a breeze.

  1. Procrastinating is a no-no

Are you a procrastinator who leaves everything until the last minute?

Well, with bookkeeping, you can’t be!

It can quickly get out of hand and pile up on your desk.

As a small business, it is imperative that you keep to financial deadlines like Making Tax Digital (MTD).

If you don’t have time to do your bookkeeping while running your business, it might be time to outsource to help your capacity.

  1. Avoid bad filing systems

You must keep your old receipts and file them correctly alongside relevant paperwork.

If you’re reading this and thinking, “Oh dear, I don’t keep my receipts,” – don’t worry.

There are plenty of business owners like this around the UK. Trust us!

Here’s a good habit to get yourself into:

When you get in the office every morning, pop your receipts in a folder.

Even if this is being filed correctly later that day, at least you’ve made a start.

Are all of your invoices and bills in sequential order?

If they aren’t, then they should be!

This will make life much easier when dealing with deadlines, audits etc.

  1. Don’t mix business and personal expenses

If you’re bookkeeping for yourself while mixing your business and personal expenses, you’re making your bookkeeping a lot harder.

You would have to sit and sift through hundreds of receipts and separate them into business and personal.

Keeping these expenses separate will spare you this headache and give you time to do other things.

When the tax return deadline comes around, if you’re organised and have split your business and personal expenses, you’re more likely to pay the right amount of tax for your business.

  1. Be consistent

Set a monthly date to sit down for a few hours to get your bookkeeping and accounts for the last calendar month.

If you feel like you’re bogged down with too many other tasks, you can always contact Rosemary Bookkeeping to take over the bookkeeping side of your business.

  1. Pay electronically

An easier way to keep an eye on and make your bookkeeping easier is to ensure all business transactions are paid on your business card and not with cash.

This is obviously, because of the information your bank would provide on a statement; amount, date and the recipients/company name.

  1. Have distinct employee classifications

Many businesses have different classifications of employees.

Be they full-time employees, part-time employees and independent contractors.

Keeping these separate and correctly classified is vital to avoid overpaying taxes or misfiling.

  1. Backup, backup, backup!

We all know what technology is like.

It can turn off or have an inconvenient error at any time.

This is why backing up your data securely on a cloud-based platform is extremely important.

You must ensure this is a secure platform that complies with GDPR to guarantee the safety of your data.

  1. Concentrate on a bit of light reading

You would be surprised how many business owners don’t read financial statements and add them to their procrastination pile.

There are plenty of reasons why financial statements can help with your business and avoid a financial breakdown.

Here are a few:

  • See current/upcoming financial trends within your business sector
  • Gain insight into maximising your tax deductions for the year
  • Share with existing/potential investors how your business is performing
  • Stay in control of all of your cash flow

  1. Choose the right bookkeeping software

It’s vital to choose the right bookkeeping software for your business.

There are many different types, from cashbook-only software to that that covers everything from ledgers to foreign currency transactions.

Here is our recent comparison of some of the different bookkeeping software.

  1. Outsource your bookkeeping

If you, the business owner, are also doubling as the office administrator/bookkeeper, you won’t have time to do the most crucial thing, grow your business.

That’s why outsourcing your bookkeeping can benefit you and your business.

Outsourcing is also cost-effective and more accurate.

You’ll only need to pay for the hours worked on your accounts rather than paying a monthly wage for an in-house bookkeeper.

You will also get the necessary work done on your accounts professionally, so you can be confident they are consistently correct.

If you are confused by the bookkeeping side of your business or don’t have time to dedicate to bookkeeping, find your nearest Rosemary Bookkeeping expert to see how we can help you today.

Coronation 2023: The Big Help Out

Looking for ways to commemorate the coronation as a business? 

The Big Help Out is a coming together of thousands of organisations nationwide, uniting to support local communities.

What is The Big Help Out?

Organised in conjunction with celebrations for the upcoming coronation of King Charles III, starting on Monday 8th May, The Big Help Out is a voluntary initiative supported by some of the UK’s largest volunteer organisations, like the National Trust, Scouts and the RSPCA, to raise awareness of volunteering throughout the UK.

Activities throughout the day will provide opportunities for people to experience volunteering and make a difference in their communities.

How do I take part?

There are many ways to get involved in The Big Help Out.

If you are interested, you can participate as:

  1. An individual
  2. An organisation
  3. A business

To register as any of these participants, access the official app.

What can I do?

As Big Help Organisers state,

“There will be opportunities for everyone to join in. No matter what you are good at, there’ll be something to suit helping hands of all shapes and sizes! From checking in on someone who’d like a bit of company or volunteering for a charity. The more of us who join in, the bigger help we will be.”

Activities can include events benefitting:

  • Animal Welfare
  • Community
  • Crisis and Welfare
  • Health and Social Care
  • Older people
  • Sports, Arts, and Culture
  • Sustainability and the Environment
  • Young People and Children

There’s plenty to do, so get involved however you can.

We’ll see you there!

Give your business a royal treatment

Whatever the size of your business, having a good handle on your finances is vital.

At Rosemary Bookkeeping, our dedicated experts can provide a range of support in your bookkeeping.

Whether you need support on processes and legislation like MTD and Advisory Fuel Rates or you want to outsource your books to a local professional, Rosemary Bookkeeping can provide the help you need.

Give yourself peace of mind and the time to focus on running your business by finding your nearest Rosemary Bookkeeping business or calling 0345 862 0072 today.

Bookkeeping is more than software

You can’t leave it all to tech.

Bookkeeping is tricky. Especially for small businesses, when you are juggling a million other things. So, it’s understandable that you want to ease the burden of this task any way you can. Nowadays we can turn to technology to solve most of our problems, and bookkeeping is no exception. You may have even seen adverts praising digital bookkeeping aids. Popular software like Xero and Quickbooks promise to make bookkeeping easy, help you track and manage expenses and stay on top of taxes. But how true is this?

What bookkeeping software does

Quickbooks promises three major things:

  • The ability to stay on top of taxes
  • The ability to track and manage expenses
  • Keeping data that allows for ‘no-nonsense’ payroll

This technology is all designed around one central premise: streamlining your bookkeeping experience. Everything bookkeeping software do is about using technology to save you time.

The bottom line is, using online software depends on you. Your ability to use this software depends on how much you know about bookkeeping and how up to date you are with recent legislative changes etc. For example, Quickbooks and Xero both rely on the use of VAT codes. But they do not provide support on what these are, and how to use them. For all their data and efficiency, they do not help much if you don’t know a lot about bookkeeping. As a result, relying on this software means taking a big risk depending on how much you know. If you are not confident with your books, you would still be better off using a bookkeeper.

What a bookkeeper does better

Having a personal bookkeeper involves all the benefits of bookkeeping software and more. They help you keep on top of your VAT returns, payroll and tax obligations. A bookkeeper also helps you track and manage your expenses, produces debtor and creditor reports to help with your cash flow and daily management of your business. They provide you with industry-specific knowledge and help you make more educated business decisions. This means you receive support all year round with any bookkeeping queries you might have. With a bookkeeper, you are not reliant on technology. QuickBooks and Xero are fantastic tools that can automate a big part of the bookkeeping process, but when it comes to technology, errors made by automated systems cannot be avoided and need somebody with experience and knowledge to check if the entries and codes are correct. Using a bookkeeper allows you not to be reliant on the software and automatic data entry. A bookkeeper also assures that your business is compliant, you meet all the deadlines, and your information is archived properly. Thanks to this you can avoid costly mistakes, save time and money. knowing that your business finances are in good hands.

For a reliable and professional bookkeeping service, contact your nearest Rosemary Bookkeeping business today.