Bookkeeping
We understand the importance of accurate and up-to date business records. Not only does this allow you to meet your legal obligations as business, but from a management perspective this can be invaluable in business decisions. At Clay GBP we encourage all our clients to adopt Cloud software services, as it meets the requirement of keeping digital records as well as ensuring you can access your records at anytime from any device. Furthermore if Clay GBP are providing multiple services in addition to bookkeeping we are able to access your records with ease, simplifying our work processes and allowing you to focus on your business.
Bookkeeping Records
No matter the business type, you are expected to maintain records pertaining to the financial transactions of the business. As a sole trader or partnership records must be accessible for at least 5 years after the 31 January submission deadline of the relevant tax year. An incorporated business must keep records for 6 years from the end of the last company financial year they relate to. This requires an organised and controlled bookkeeping system to ensure you meet the legal requirements determined by HMRC. Consequently this can become an administrative burden for your business. Our experienced and knowledgeable bookkeepers at Clay GBP can remove this burden and ensure your books are up to date and compliant. This allows you to easily make sense of your financial information and focus on the smooth running of your business.
System Improvements
Our team can help you and your team to maintain the business’ bookkeeping records from any device with internet access. Your records will be kept securely encrypted on the Cloud, allowing you to check the data at any time, view reports and even photograph and upload a receipt from your phone. We specialise in Xero, but we also have extensive experience of other software packages such as QuickBooks and Sage One. We can help you make the switch to online bookkeeping, converting your existing system to the new software and training you and your team to establish more efficient processes. Whether you require a full bookkeeping service or specific recommendations our bookkeeping team will be able to assist.
Making Tax Digital – Income Tax Self-Assessment
From April 2024 HMRC were expected to roll out Making Tax Digital (MTD) for Income Tax Self-Assessment, however this has now been deferred until April 2026 at the earliest. This initiative is likely to affect all sole traders and landlords, with the current plan being a gradually introduction, the first to be included being self-employed individuals & landlords with income over £50,000. The following year self-employed individuals & landlords with income over £30,000 would be included.
Currently there is no timescale for bringing general partnerships under MTD. Those impacted will be obliged to register with HMRC for MTD and there will be a legal requirement to keep digital business records, currently this covers spreadsheets as well bookkeeping software. Ordinarily you would still be expected to submit your tax return on an annual basis, however as a requirement of MTD ITSA, you will need to provide HMRC with quarterly summary updates of income and expenditure.
The implications of MTD ITSA are significant as you will now be expected to keep your records up to date on a quarterly basis. Our bookkeeping team are equipped with the infrastructure and specific bridging software required to prepare and submit your quarterly summaries. We can support and advise you in your MTD journey and make sure you are fully prepared for the changes.