The deadline for Making Tax Digital (MTD) has been extended by two years to April 2026. However, nothing has changed when it comes to the immediate benefits of going digital. We’re strongly encouraging landlords and sole traders to make the switch to MTD compliance now. Preparing for MTD isn’t just an early box-tick or being keen; it will positively impact the day-to-day running of your business and make your life easier.
Going digital from day one sets you up for success.
If you’re a new business starting up now, using the right tools from day one will save you the hassle of transitioning down the line when the deadline approaches. Setting yourself up on MTD systems now makes compliance easier and quicker, giving you more time to focus on the running of your business.
For landlords, this means establishing themselves on Hammock, the time and cost-saving property finance platform. Read our blog for more information on why Hammock is the best system for landlords.
Keeping your tax systems online safeguards against technology problems.
The fact is, technology doesn’t always cooperate. Whether it’s a spillage on your laptop or corrupted Excel files, storing information on your computer leaves your information vulnerable to damage or, in the worst-case scenario, being lost forever. Setting up your financial systems on internet-based software means your data is backed up automatically. If your computer decides to crash tomorrow, you’ll have peace of mind your tax information won’t be affected.
Digital systems also allow you to access your up-to-date financial records from anywhere, as long as you have an internet connection. No more lugging your laptop or hard drives with you. If you’re using paper files to keep tax records, think about how much space you could free up in your house by switching to online systems. Goodbye, clutter.
SDoftware designed for specific purposes
Software like Excel was designed for any number of uses, whether that be planning the seating arrangement at a dinner party or organising a Year 6 football tournament. Specific software, like Xero and Hammock, has been created with one purpose in mind: helping small businesses and landlords manage their finances.
A clear and current picture of your financial health will help you bring your financial data to life and help you make those important decisions. Xero and Hammock let you run reports at any time so you can check performance ,at any given time. If you’ve got your sights set on growth, you’ll be able to achieve it faster by being able to see this big-picture financial information.
Digital systems relieve the stress of tax season.
Tax season is a dreaded time for many small business owners, with a last-minute scramble to submit files. Keeping your records on specific software means you won’t have that panic at tax time. Digital financial platforms give you year-round clarity on your revenue, expenses and bookkeeping. When it comes to tax season, all your information will already be prepared and ready to go in a few clicks.
Move to digital solutions today.
Apprehensive about moving to new software? Going digital is a big change, and we’re here to support you through a seamless transition. Get a jump-start on going digital and set yourself up for success; visit our MTD page to find out which software is best for your business.