Learn why you should encourage your clients to go digital for their Self Assessment in 2022
Learn why you should encourage your clients to go digital for their Self Assessment in 2022
Article by GoSimpleTax
As the new tax year for 2022 gets under way there are increasing living costs, hikes in NIC and the uncertainty of future increases. That’s why it is more important than ever to encourage your clients to complete their 21/22 tax return now! Knowing their tax owed will allow you both to better plan and budget for the year ahead.
You may need to remind your client that filing now does not mean you pay early, your tax owed will still be due on 31st January 2023.
Using digital software to check and file your tax owed is quick and simple, let’s have a look at that along with why else filing digitally in 2022 is a great idea.
Enhance security
Tax return software allows you to log all income and expenses in the system. That means no more hoarding scraps of paper – instead, you can take photos of your expenditure and you can upload it to the cloud, where it’s secure and less likely to be stolen.
Record income more easily
You can use digital tools to understand when to schedule sending invoices as well as the follow-up emails to ensure that customers pay on time. Integrations with online payment solutions like SumUp and PayPal can additionally help your customers pay you more quickly using a debit or credit card, saving you from chasing payments in the first place.
Each of these payments will then filter into your tax returns, making the 31st January tax return deadline much easier.
By using software to request payment, any invoices paid will automatically update your accounts. For example, if you receive a payment for an invoice you sent, your predicted tax bill will be automatically updated based on the amount of that payment. This saves you time and also unifies two of your businesses most important admin tasks: invoicing and the tax return.
Real-time answers and advice
Paper, by nature, is chaotic. You’ll need to file and accurately record your accounts – up to six years of your accounts, in fact, to ensure that you are covered if HMRC launch an investigation into your tax return. That’s sure to take up a lot of space, and it also doesn’t provide you with an easy-to-access overview of what you owe the taxman.
Digital files, on the other hand, are much easier to read. Plus, as some tax return software providers also highlight any opportunities to claim tax relief, there’s an extra incentive for you to stay on top of your record-keeping.
Be MTD-ready
The self-employed and Landlords with annual business or property income of more than £10,000 must follow MTD for Income Tax rules from their next accounting period – starting on or after 6 April 2024.
You’ll still need to send HMRC a Self Assessment tax return for the tax year before you signed up for MTD for Income Tax. But after that, you can wave goodbye to completing an annual Self Assessment tax return and all the hassle and panic that can go with it. Having to record your expenses every quarter might also prevent you from forgetting and not claiming some.
GoSimpleTax is a secure cloud-based solution, and it is officially recognised by HMRC. It includes partnership, non-resident, and previous year returns. it has an easy-to-use interface and submits direct HMRC.
GoSimpleTax are ready for MTD and the software shows the Tax liability in real time. It has a simple dashboard allowing you to switch between clients easily.
IAB members receive a 25% discount on GoSimpleTax to receive your discount code sign-up here
Example – 20 client submissions just £145.49 inc VAT and using discount.
RRP = £173.99 for 10 submissions and £1 thereafter for additional returns.
