Cloud Accounting
Cloud accounting services are the simple way of enabling software to be stored and accessed online.
This way of accounting serves similar functions as accounting software that would be stored on your computer, but is hosted on remote servers.
There are many benefits of making use of cloud accounting:
- Ease of access is one of the primary advantages associated with cloud-based accounting. Data can be viewed anywhere and at any time by you and those that you give access to.
- Your data is securely stored and backed-up in the cloud – meaning that you will not be filling up valuable storage space on your hard drive.
- Cloud accounting services automatically update and upgrade, allowing you to devote more time and attention to your business.
- The use of real time information associated with cloud accounting means that your data will always be up to date and current.
- Cloud services are extremely cost-effective: expensive computer equipment does not need to be installed in offices as everything is stored online.
It is clear to see that cloud accounting is the way forward: its ease of use, accessibility, and cost effectiveness ensures that it remains a popular choice for businesses worldwide.
Why use our cloud accounting service?
- We can advise on the set up and implementation of various cloud accounting solutions, including full initial training and support
- We are experienced in converting existing desktop bookkeeping software data to cloud based solutions
- We use these solutions within our own bookkeeping department so are well practiced in overcoming the practical problems of implementing cloud accounting
- We can provide a more real time service and offer more immediate support (no more backups put onto a CD or memory stick and posted to us) - just take a look at our Virtual Finance Officer service
Making Tax Digital for Income Tax
Making tax digital for income tax is HM Revenue & Customs change in legislation, enforcing digital records to be maintained and quarterly submissions of income & expenses to be made.
Sole traders and or individuals with property income more than the following thresholds will be mandated. Income for the year ended 5 April 2025 will be the values used for establishing mandating for April 2026.
- From April 2026 for those with an income over £50,000.
- From April 2027 for those with an income over £30,000.
- From April 2028 for those with an income over £20,000.
What’s New Under MTD for Income Tax
Here’s a summary of the current regime for MTD for Income Tax (IT), based on the latest government guidance:
What You Must Do
- Keep digital records of your business (or property) income and expenditure.
- Provide quarterly updates to HMRC via MTD compatible software.
- Submit a final declaration at the end of the tax year.
Qualifying Income
- The “gross income” that counts is before deducting expenses.
- Qualifying income includes self-employment and property/rental income.
- Income from employment (PAYE), dividends, and some other sources do not count toward the MTD threshold.
What This Means for You
- If your combined self-employment + property income is over £50,000, you should be preparing now for the April 2026 start.
- If your income is between £30,000–£50,000, you’ll be in-scope from April 2027.
- You’ll need to choose MTD compatible software.
- You’ll need to register with HMRC and connect your compatible software.
- Maintain digital records.
- Complete your quarterly submissions ongoing.
How We Can HelpHow We Can Help
- We offer full support to make your transition to MTD smooth and stress-free.
- Software selection — We’ll help you pick and set up the most appropriate MTD-compatible software.
- We can train you how to use the software and get the most out of its functionality.
- Maintaining your records – we can do this all for you.
- Quarterly filing — We can prepare and or check your quarterly updates before submission, helping you avoid penalties and headaches.
- Complete your yearend submissions and advise you of your tax liability and payment deadlines.
- Ongoing advice how to be tax efficient and make the process as smooth as possible.