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How to help your clients prepare for MTD for income tax

14th Jun 2022
Brought to you by
bokio

Make managing your clients simple with our time-saving software.

Save content
Have you found this content useful? Use the button above to save it to your profile.

Although MTD for income tax isn’t being introduced until 6 April 2024, preparing the right way is already a concern for small business owners. 

Who will it affect?

Making Tax Digital will have a huge effect on sole traders and how they handle their taxes, including those who rent out properties.

Self Assessment deadlines

The current Self Assessment tax return deadline of 31 January is a notoriously stressful time for both accountants and sole traders alike. With the big change of submitting quarterly updates, EPOS and a final end of year declaration there will need to be a big shift to the way small businesses will handle their accounts on a regular basis.

How to prepare your clients

The most important way to prepare your clients is by getting them into good habits with their accounting. As all submissions will need to be made digitally, introducing your clients to a collaborative online accounting software could make both of your jobs easier in the long run.

Collaborative software

With collaborative software, clients will have useful tools like invoicing and expenses management to help them run their business. Meanwhile, you get easy access to your clients information so you can manage their accounts.

Regularly share materials

Teaching your clients good habits, like uploading materials such as receipts when they receive them, is great preparation for the new way of working MTD for income tax will cause.

In an ideal world, clients would upload their receipts on the go, set up bank feeds to automatically import transactions, and do their invoicing and expenses all within the same software. This means that you can submit tax returns without needing to chase for last minute information.

Education becomes key, and making it clear what you expect of your clients. For example, perhaps weekly or monthly uploads of information could work better for both of you. With collaborative software, you can create the working relationship you want with your client.

By preparing your clients early, the new MTD for income tax regulations won’t come as a shock when they are introduced in future. 

Collaborate with Bokio

Bokio accounting software offers bookkeeping, invoicing and expenses management. It’s a great solution for collaborating with smaller clients, like small businesses, sole traders and freelancers. Features like bank feeds, bookkeeping templates and automated reporting make it easy to collaborate with your clients.

Bokio helps you save time by using automation, so you can focus on offering high value advisory services.