Quarterly reporting for the self employed
The Chancellors recent announcement revealed a little more about the new Digital Tax Account. It looks as if the self-employed will need to report their figures and pay tax quarterly.
More details will be revealed early next year but this could force most self employed on to the cash accounting rules. This is a simplified option for self employed to complete their tax return where tax is paid on the difference between Money In and Money Out with the option of flat rate expenses.
If a self employed person doesn’t opt for cash accounting they will need to complete full business accounts using standard accounting rules.
The key will be using software to make life easier and Sackmans will be keeping a close eye on developments.