Struggled With Your First MTD ITSA Return?

Here's how to make the next one easier.

Your first quarterly update didn't go to plan? You’re definitely not alone. Whether you missed it, struggled with the software or simply weren't sure what HMRC wanted, now is the time to get things sorted before the next deadline.

Sound familiar?

☐ You haven't submitted your first quarterly update yet

☐ You submitted it but weren't sure you'd done it correctly

☐ The software confused you

☐ Your bookkeeping wasn't up to date

☐ You left everything until the last minute

☐ You have no idea what you're supposed to do next

If you ticked any of these, don't panic. But, don't leave it until the next deadline either!

The next quarter doesn't have to be a repeat of the first.

The best thing you can do now is get your records, software and processes into a position where your next quarterly update becomes a lot easier.

5 things to do before your next MTD ITSA deadline

1- Get your bookeeping up to date

Before you worry about the next quarterly update, make sure your bookkeeping is actually up to date. That means checking that you've recorded the income you've received and the business expenses you've incurred, and that nothing has been missed.

If you've been trying to keep everything in a spreadsheet or notebook, MTD ITSA is a good reason to rethink your system. It's time to streamline your processes and make quarterly updates easier.

Having your MTD records updated regularly means that when the next deadline comes around, you aren't faced with several months of transactions and the inevitable “I'll deal with it this weekend” situation.

And yes, we all know how that weekend usually goes...

2- Check that you're using the right software

MTD ITSA requires you to use compatible software to keep digital records and send your quarterly updates.

If you struggled with the first return, it is worth taking a step back and asking whether the software you're using is actually working for you. The cheapest option isn't necessarily the easiest, particularly if you aren't confident with bookkeeping.

A good accounting system can make it much easier to keep your records organised throughout the quarter, rather than trying to reconstruct everything just before the deadline.

3- Keep your records updated

One of the biggest advantages of getting your records sorted during the quarter is that you can deal with problems while they're still small.

For example, if you're unsure whether something is a business expense, it's much easier to ask the question when the transaction happens, rather than six months later when you're staring at a bank statement wondering what on earth you bought for £47.50!

4- Work out what went wrong last time

Was it:

• Not knowing which income and expenses to include?

• Not having your bookkeeping up to date?

• Struggling with your accounting software?

• Being unsure how the figures should be categorised?

• Not understanding what HMRC was actually asking for?

• Simply not having enough time to deal with it?

Whatever the reason, fixing that problem now will make the next quarter considerably less stressful.

5- Speak to an accountant.

If you've missed your first quarterly update, or you're unsure whether you've submitted it correctly, getting professional advice now could save you a lot of stress later.

An accountant can look at where you are, help you get your records into shape and make sure you have a sensible system in place going forward. You don't necessarily need to hand over every aspect of your finances forever. You may just need someone to get you set up properly and double check your returns.

And if you'd rather not deal with MTD ITSA yourself at all? That's something your accountant may be able to take care of for you too.

Haven't submitted your first return yet?

Don't bury your head in the sand!

Getting advice now is much better than waiting for your next deadline. An accountant can look at where you are, help you undersand what needs sorting out, and get you into a system that works moving forward

Need a hand with MTD ITSA?

If you've struggled with your first quarterly update, haven't submitted it yet, or simply don't feel confident about tackling the next one yourself, speak to your accountant before the next deadline arrives.

At Revis & Co, we can help you get your records and software set up so that MTD ITSA becomes a much more manageable part of running your business, rather than another thing sitting on your to-do list making you nervous.

The earlier you get things sorted, the easier the next quarterly update should be.