By now people should be aware of the impending arrival of Making Tax Digital. Staging dates are:
- April 2019 – VAT registered businesses with turnover over VAT threshold have to submit VAT via Making Tax Digital for VAT
- April 2022 – All VAT registered business have to submit VAT via Making Tax Digital for VAT (so this brings in voluntarily registered businesses)
- April 2024 – Unincorporated businesses and landlords with turnover over £10,000 will need to use MTD for Income Tax
- Date not set – MTD for Corporation Tax for Companies
Under MTD there is a requirement to use software to send quarterly updates to HMRC. This could be a cloud accounting package / app or a spreadsheet enabled with Bridging Software.
For cloud accounting packages / apps we recommend FreeAgent, a well regarded accounting software package for small business – we recommend FreeAgent as we’ve found it reliable, user friendly and to have a good balance of features v pricing.
FreeAgent tracks income and expenses, linking to your bank account if you wish. It calculates and submits VAT, assists with invoicing, and generally aims to be a tool for all day to day number crunching.
What Does it Cost?
The pricing of FreeAgent via Whitefield Tax is as follows:
|Free Agent Direct||Whitefield cost|
|Sole Traders||£19/month or £190/year||£16/month|
|Partnerships||£24/month or £240/year||£20/month|
|Companies||£29/month or £290/year||£25/month|
|All prices exclude VAT. Available to registered clients of Whitefield Tax only.|
As well as access to FreeAgent our monthly charge includes a support package covering set up, informal training and ongoing transaction support.
Natwest, RBS and Mettle business customers are able to get FreeAgent free of charge, and we can add this to our portal to access your data, however we need to charge a Support Fee if you need us to provide set up, support or training for your software (see below).
Likewise if you have a direct FreeAgent subscription, we can add this to our portal to access your data, however again we need to charge a Support Fee if you need us to provide set up, support or training for your software (see below).
When you subscribe via ourselves we include a support package covering:
- Set up
- Informal training
- Periodic checking of your data and entries
- Ad hoc advice
This support package is based on our experience of what a typical client needs from us. It complements, but does not take the place of, technical support provided by FreeAgent themselves.
If you subscribe to FreeAgent directly, or have a free subscription with NatWest, RBS or Mettle, then we charge £15/m for support for companies, £10/m for partnerships and sole traders, both plus vat. Of course, this isn’t compulsory but we find most clients benefit from it.
Are There Other Choices?
There is no requirement to use this package – if you have another in mind, that’s fine; we will try to support all of them, our aim is to be “open platform” and fit in with our clients choices.
However FreeAgent is “best of breed” in our view, and does offer a significant advantage in us being able to easily access and review your data. All other factors being equal its easier for us to have clients on common platforms.