New quarterly self assessment digital tax for self employed- confused

[toiletpaperthief]

I've been watching videos on how to and can't fully figure this one out. I believe it starts April 26 (next month!) and we need to download the HMRC app on our phone. We need to make payments every 3 months now?. I usually fill in my taxes online before the 31st Jan deadline, usually on christmas because I've got plenty of free time and can properly concentrate on sending the right paperwork and revising it. Does that mean I will need to start filling my taxes every 3 months starting this April or I can wait till next Christmas and do the whole tax year as usual?

Sory for sounding like a dumb blond but I find it confusing. Has anyone properly figured this out?

Depends on what your income from self movement is. The first people to start this year are those with gross qualifying income of more than 50k

Surely this isn't the first you've heard of it though?

Oh God it's MAD confusing.

ChatGPT has really helped me.

You make quarterly statements, but stick to the current payment situation (twice yearly if on account).

You can do it through most business bank accounts (I use Monzo).

Once your turnover hits £50K you have to send in quarterly reports. Payments are still in January. It's meant to stop surprise bills.

I've gone with sage mtd free and it's helped me get on top of paperwork even though I don't need to use it this year

After seeing a few posts on FB from people who've suddenly had their Monzo accounts closed without warning I'm a bit nervous of having an account with them.

What is your income from self employed and rental income sources?

Be aware that when people say income they mean turnover, not profit.

I make 30 something yearly (less than 50k). Sorry should have pointed it out on my post.

The first I heard of it was a few days ago. I would have thought a letter or email to explain the changes might have arrived from HMRC otherwise how are you supposed to know

If you don't make £50k then you don't need to worry until this time next year, and then only if you make £30k+

I've been getting emails from HMRC for at least 2 years. They have ramped up over the last few months.

When you do come to use MTD next year (26-27) , you HAVE to change your accounting dates to April 6-April 5. Them’s the rules I’m afraid.

I’ve been getting emails and webinar invites for months even though I don’t need to start until next year. If you’re registered with HMRC for self assessment I’m surprised you haven’t had any emails.

Do you mean for limited companies?

You don’t need to start until 27/28 tax year. It’s only those with £50k plus turnover who start 26/27 tax year. Below 30k is the year after that.

I got chatGtp to explain it all to me.
Signed up for a free Mettle business account which allowed me to get the FreeAgent app for free too.
Have been dreading it for years, but now I actually understand it I’m embarrassed to say I’m looking forward to getting cracking.
It means I can do all my expense logging and invoices through the app day by day (probably in bed or on the tube 🤣) as opposed to letting it all build up.
I also have become quite boring about finance in my old age so I’ll be enjoying looking at all the fluctuating ins and outs as opposed to just guessing how I’m doing month by month!

No, companies don't have to do MTD

I was only asking because @BorgQueenmade reference to accounting dates changing which doesn’t apply to sole traders who are all on the same tax year.

Sole traders can have different year end to 5 April for their accounts

But the date for payment of tax does not vary between sole traders.

I've been told that you can use a normal bank account doesn't need to be strictly a business one?

The whole thing is a pain in the arse. I am a sole trader and also a landlord so I have to do MTD for both. I will be using FreeAgent.

Is it turnover or profit? As my costs are almost 2/3rds of turnover

Turnover

Well I’m 100% going to be keeping my turnover below £30k from next year so hopefully I can ride this out. It’s too tiring doing it so often

That's true now. I just have a personal bank account that I use solely for business. Been using it for over 10 years.

I think you can use a normal one 👍🏼