Ascentis TV – Introducing FreeAgent
In this episode of Ascentis TV we delved into the upcoming changes in the tax landscape, particularly focusing on Making Tax Digital (MTD) for income tax. In this blog post, we’ll unravel the key takeaways from the discussion between Mark, an expert in tax tips, and Dougie McMillan, a representative from FreeAgent, a software provider.
Understanding MTD and Its Impact
The primary focus of the session was on the significant shift coming with Making Tax Digital for income tax, scheduled to commence on April 6, 2024. This transformation will particularly impact the self-employed and landlords, requiring them to adapt to a new way of submitting information to HMRC.
Dougie clarified that if an individual earns over £10,000 in turnover, they are mandated to keep all records digitally using compliant software like FreeAgent. This entails filing quarterly submissions to HMRC, followed by a final declaration and submission at the end of the year.
The Deadline Looms: April 6, 2024
While the official deadline is set for April 6, 2024, both experts stressed the importance of early preparation. The transition to MTD represents a fundamental change in how businesses manage their financial records. Even individuals who might not consider themselves business owners, like landlords, will need to adapt to using specialised software.
Quarterly Reporting and the Changing Landscape
The conversation touched upon the quarterly reporting aspect, drawing parallels with the process of submitting VAT returns. This will necessitate a cultural shift for landlords accustomed to traditional record-keeping methods. The experts emphasised the need for individuals to get comfortable with using software like FreeAgent to ensure a smooth transition.
FreeAgent: Bridging the Gap
Dougie introduced FreeAgent as a solution designed to simplify the MTD compliance process. Developed 15 years ago by IT consultants dissatisfied with cumbersome spreadsheets, FreeAgent focuses on user-friendly interfaces and real-time information. The software aims to make the transition enjoyable, minimising the perceived administrative burden.
A Tour of FreeAgent
The video includes a walkthrough of the FreeAgent software, showcasing its features such as overview screens, invoicing, expense tracking, and tax timelines. Dougie highlighted the mobile app’s role in effortless record-keeping, allowing users to snap pictures of receipts for instant digital storage.
Taking Action
As the deadline approaches, landlords and the self-employed are encouraged to start preparing for the change. The experts suggested reaching out to tax advisors and exploring FreeAgent to ease the transition. The blog post concludes with a call to action, urging individuals to proactively address the impending shift in tax filing processes.
In summary, the ATV FreeAgent Tech Talk served as a valuable resource for understanding and preparing for the forthcoming changes in tax compliance, emphasising the role of technology in simplifying the process for businesses and individuals alike.
About Ascentis TV
Ascentis TV is our update show that gives business leaders updates and insights on various growth-related topics such as taxation, financial management, people management and much more. The show features our amazing experts from Ascentis who have many years of experience in helping businesses grow successfully and helping individuals achieve their personal vision of success.
You can find more Ascentis TV episodes and subscribe to our channel on our YouTube here.