Springreach Training & Coaching

𝗙𝗥𝗘𝗘 - 𝗠𝗮𝗸𝗶𝗻𝗴 𝗧𝗮𝘅 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗤&𝗔 𝘀𝗲𝘀𝘀𝗶𝗼𝗻
If you're self-employed and are worried about how and when Making Tax Digital is going to affect you, sign up to our FREE Q&A session. We'll be looking at who it applies to and when, what it involves, and whether you'll need to make any changes to your current bookkeeping system or software. Sign up using the link below!

Making Tax Digital is a big change for everyone. The challenge is to find a solution that works for everyone – 𝘆𝗼𝘂 (as the business owner), 𝘆𝗼𝘂𝗿 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝗮𝗻𝘁 and 𝗛𝗠𝗥𝗖.

I read a post recently about how accountants need to be looking for efficiencies in Making Tax Digital (MTD) by streamlining processes and making use of AI. It’s not the first time I’ve seen the suggestion that the best way for accountants to streamline processes is to get all their clients to use the same software.

Whilst I can see the logic, the suggestion also worries me - because, for a change of software to be successful, it needs to be done with the consent and emotional buy-in of the individual.

Another post last week talked about self-employed individuals holding their ground and using whatever software suits them, even if their accountant doesn’t like it. Another worrying point of view. The software needs to suit the individual, but it needs to suit the accountant and HMRC too.

Both approaches are flawed. Software choices aren’t black and white - any more than life is.

A few years ago, I took on a new bookkeeping review client. He had been doing his own bookkeeping quite happily in a different software package, and then his accountant moved him to Xero. He hadn’t argued. After all, his accountant must know best. Except they moved his books across and left him to it.

Fast-forward a year, to one stressed client and bookkeeping that need significant sorting out because the client hadn’t been trained on how to use the new software.

Another client came to me, who was perfectly happy using the software she’d found online. Except it was scarcely fit for purpose. In trying to be “helpful”, the software was prompting her to create transactions based on guesswork, leading to incorrect dates and VAT errors, and it couldn’t generate the basic reports her accountant needed to complete her tax return from.

The only way her accountant could calculate the figures was to spend time exporting the bookkeeping data into a spreadsheet, sorting it, formatting it and adding in manual formulae.

I’m Jill from Springreach Training & Coaching. Through Springreach, I am gently pushing back against ideas like these.

Not everyone needs to use the same software – or even use software at all, if they can keep a spreadsheet that contain all the information their accountant and HMRC requires. One size doesn’t fit all.

And it does matter whether your accountant likes the software you’re using. If your accountant isn’t recommending a certain software package, it’s likely there’s a reason for it. Just like there might be a reason why they’re recommending a change.

For more bookkeeping, software and tax tips, follow 𝗦𝗽𝗿𝗶𝗻𝗴𝗿𝗲𝗮𝗰𝗵 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 & 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 on social media or sign up to my mailing list. Link in the comments below.



[Image credit: marc belver colomer on Unsplash.]

Earlier this month I met a lady online to review her current bookkeeping system. She wants to move to a system that will make things easier for her now 𝘢𝘯𝘥 will be MTD-ready when the time comes.

She currently keeps her records in a spreadsheet with a paper filing system alongside. She has a separate bank account for her business. All her business income is paid into it and most of her business expenses are paid out of it too.

We discussed how using bookkeeping software with a bank feed would save her having to type in the date, name and amount of every transaction into her spreadsheet – saving her time and reducing the potential for errors.

She told me she uses practice management software to send invoices to her clients. Once Making Tax Digital applies to her, she'll need to comply with HMRC’s digital links requirements. The digital links rules prevent information being copy-typed or cut-and-pasted from one piece of software to another. Data transfer must either be automated or electronic.

▶️ Automated data transfer needs an API (application programming interface). Only two software packages offer an API that links to her practice management software. Both are expensive. As she’s just starting out, she’s looking for a more cost-effective solution, even if it means a bit more work on her part.

▶️ Electronic data transfer involves exporting and importing .csv or .xml files. Her practice management software can export her sales invoice data in .csv format. So, to comply with the digital links rules, she'll need bookkeeping software that can import a .csv file.

We talked about who would be doing her tax return. She said she was planning to do it herself - which means she needs an all-in-one software package, that can submit her end-of-year tax return as well as keep digital records and send quarterly updates to HMRC.

So far, we know she needs software with a bank feed that isn’t too expensive, that can import .csv files, send quarterly updates to HMRC and submit her tax return too.

My final question was to ask who she banked with. Some banks offer free access to bookkeeping software as a benefit. NatWest, Royal Bank of Scotland, Ulster Bank and Mettle give business account holders access to FreeAgent.

FreeAgent suits the size and nature of her business. By having a business account and paying bank charges, she’ll be able to access FreeAgent’s all-in-one bookkeeping and tax software for free.

As the above case study shows, choosing software for Making Tax Digital isn’t always straightforward. Not all software will suit every individual or business.

On Friday 3rd July I’m holding a free lunchtime Making Tax Digital Q&A session from 12:00 to 1:00 on Zoom. If you’re not sure how or when MTD is going to affect you, or what changes you might need to make to your current bookkeeping system, please sign up using the link below.

My aim is to make people’s transition from Self Assessment to Making Tax Digital as smooth and painless as possible. Minimum cost. Minimum upheaval.

If you’re happy using spreadsheets, and your spreadsheets contain the information HMRC needs, you don’t need to use bookkeeping software to comply with Making Tax Digital. All you need is bridging software, which enables you to submit the figures directly from your spreadsheets to HMRC.

For the last 10 months, I’ve been a participant in the Thomson Reuters Digita Making Tax Digital pilot. I signed up for Making Tax Digital early and have been using Digita’s bridging software feature to submit my quarterly figures to HMRC for the whole of 2025-26. I then did my annual submission, confirming that the four quarters were correct and making any end of year adjustments - and my end of year declaration, which is the Making Tax Digital equivalent of a Self Assessment Tax Return.

One of my aims in signing up to the trial, was to test how easy it would be to continue to use spreadsheets once Making Tax Digital went live. The answer is, it’s really easy.

The first quarter takes a bit of time to set up. You have to create a “map”, to tell the bridging software which boxes in your spreadsheet belong in which category on your Tax Return. After that, it’s plain sailing.

I also trialled using bookkeeping software that couldn’t (yet) handle the MTD submissions itself, but which could export a trial balance in an MTD-compatible format. It worked exactly the same way. If a trial balance from non-MTD-compatible software can be exported in .csv or .xls format, you can use bridging software to submit the figures to HMRC.

This makes a huge difference. It means I haven’t got to tell my clients they can’t use spreadsheets anymore, or that they can’t use the software they like because it can’t do quarterly MTD updates. There's a workaround using bridging software - and I know it works in practice because I’ve done it.

For more bookkeeping and tax tips, and support in the transition from Self Assessment to Making Tax Digital, follow Springreach Training & Coaching on social media or sign up to my mailing list. Link in the comments below.



[Image credit: Freepik on Magnific]

𝗕𝗲𝗵𝗶𝗻𝗱 𝘁𝗵𝗲 𝘀𝗰𝗲𝗻𝗲𝘀 𝗮𝘁 𝗦𝗽𝗿𝗶𝗻𝗴𝗿𝗲𝗮𝗰𝗵 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝗮𝗻𝗱 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴

I'm Jill Blofield, and I'm the face behind Springreach Training and Coaching.

As a qualified and AAT-licensed accountant, I've spent the last 17 years running my own accountancy practice. A typical week involves juggling multiple deadlines and taking care of all aspects of my clients' bookkeeping, payroll, VAT, accounting and tax affairs.

Alongside that, I've spent the last 5 years planning and developing a new training venture, Springreach Training and Coaching. Designed primarily for people who are self-employed, Springreach offers a DIY bookkeeping community, a training portal, workshops, online products and a newsletter.

Behind the scenes, I'm a volunteer Making Tax Digital software pilot participant for Thomson Reuters Digita (personal tax software). I took part in a case study interview about my experiences a couple of weeks ago. You can read more about my software development journey on LinkedIn and in my November blog.

Through the 2025-26 pilot, I've tested that VT Transaction+ (the paid-for version of VT Cash Book) works for Making Tax Digital end of year purposes.

VT Software has now released its own MTD-compatible software which can submit quarterly updates for both self-employed individuals and landlords. Data can easily be imported into Digita ready for the end-of-year "MTD Tax Return".

I'll be continuing to work with Thomson Reuters in 2026-27, this time using Digita with Pandle (which offers both free and low-cost bookkeeping software). I'll also be testing VT Software's recently-released inbuilt MTD functionality to send in MTD quarterly updates.

Read my latest blog to find out more about the impact that Making Tax Digital is going to have on sole traders and their accountants, and why I've decided to move from compliance towards training.

Who does your business bookkeeping and Tax Return?

What's your preference and why?

𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗶𝗻𝗴 𝗠𝗮𝗸𝗶𝗻𝗴 𝗧𝗮𝘅 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗱𝗼𝗲𝘀𝗻’𝘁 𝗶𝗻𝘃𝗼𝗹𝘃𝗲 𝗿𝗲𝗶𝗻𝘃𝗲𝗻𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝘄𝗵𝗲𝗲𝗹.

When MTD was first announced, there was a lot of uncertainty around who it was going to apply to and whether HMRC were going to stop people using spreadsheets. As a result, a lot of accountants (including me) were warning their sole trade, partnership and limited company clients that they might need to use bookkeeping software to comply.

Fast forward 10 years and:
• The scope of MTD has been reduced to 𝘀𝗼𝗹𝗲 𝘁𝗿𝗮𝗱𝗲𝗿𝘀 only. Partnerships and limited companies don’t need to comply - though partnerships may need to in the future.
• 𝗦𝗽𝗿𝗲𝗮𝗱𝘀𝗵𝗲𝗲𝘁𝘀 can still be used, provided they contain at least the minimum information required by HMRC – transaction date, amount and category.
• If you or your accountant has access to 𝗯𝗿𝗶𝗱𝗴𝗶𝗻𝗴 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲, you can submit your quarterly figures to HMRC directly from spreadsheets. You don’t need to use bookkeeping software.

If you’re happy using spreadsheets, and those spreadsheets contain the information HMRC needs, you don’t need to use bookkeeping software to comply with Making Tax Digital.

If you use an accountant, and they have access to tax software like Thomson Reuters Digita, they will be able to submit the figures from your spreadsheets to HMRC.

If you don’t use an accountant, you'll need bridging software to send your figures in.
• My Tax Digital offers a free digital record-keeping and bridging software solution.
• VT Software includes a spreadsheet and bridging software tool called VT Report, which is available as part of its paid-for VT Transaction+ software package.

Whether you use an accountant or not, my aim is to make the transition from Self Assessment to Making Tax Digital as smooth and painless as possible. Minimum cost. Minimum upheaval.

For more bookkeeping and tax tips, follow 𝗦𝗽𝗿𝗶𝗻𝗴𝗿𝗲𝗮𝗰𝗵 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 & 𝗖𝗼𝗮𝗰𝗵𝗶𝗻𝗴 on social media or sign up to my mailing list. Link in the comments below.



[Image by brgfx on Magnifica]

Did you know you have to register for Making Tax Digital?

➡️ Even if HMRC have sent you a letter mandating you to join.

➡️ Even if you haven't had a letter from HMRC, but the total income from self-employment and rental property combined reported on your 2024/25 Tax Return was over £50,000.

The good news is that it's quick and easy to do.

I've just signed someone up to MTD in under 10 minutes.

I had all the information to hand when I logged in:
✅ business start date (if within the last 2 tax years)
✅ business name
✅ business address
✅ nature of business
✅ the date the person started receiving property income (if within the last 2 tax years)

I told HMRC which tax year I wanted to start using Making Tax Digital for Income Tax from. I had the choice between:
1️⃣ the current tax year: backdated to 6 April 2026
2️⃣ next tax year: starting from 6 April 2027

And that was it. Done.

Even if you don't need to comply with MTD until the 2027-28 tax year, you can still sign yourself up now, because you get to specify the start date.

You will need to sign up before you can send HMRC any figures. The first submission for the 2026-27 tax year, covering the quarter ended 5 July 2026 (or 30 June 2026 if you tell HMRC you want to use calendar quarters), is due by 7 August 2026.

HMRC's signup system will be down for maintenance from Friday 12 June 2026 (5:00 PM) to Tuesday 16 June 2026 (1:00 PM). You won't be able to sign up during this period.

Signing up only takes a few minutes. Why not sign up now? https://www.gov.uk/guidance/sign-up-for-making-tax-digital-for-income-tax

For more bookkeeping and tax tips, follow Springreach Training & Coaching on social media.

Yesterday was glorious. It was our first time in the water this year and the sea was as calm as a millpond.

It took me back to a time nearly 5 years ago. Another sunny day, when the sea had a few more waves.

I’d swum out beyond the green triangles many times before. Every time, the current – if there was one - had always swept me towards Felixstowe Pier. It didn’t even cross my mind that, this time, it might be different.

I’d scarcely got beyond the end of the groyne when the current took me. Not towards the pier and into the curve of the bay, but out to sea in the direction of Felixstowe Ferry.

When I got into the water that day, I’d thought it was going to be fine. I thought I knew how the coastal current in that area worked. Except I didn’t.

Which (sad, I know) made me think of bookkeeping and tax. How some people are so confident that bookkeeping and Self Assessment can’t be that difficult. The overly-confident ones, who jump straight in to do it themselves, and then get their records in a right pickle.

If their records are wrong, then their tax will be wrong too.

If they inadvertently claim for something that isn't tax-allowable, there’s the risk that HMRC will open an enquiry into their tax return – not an experience I’d recommend.

But if they miss out on expenses or allowances that they could have claimed; or accidentally include income in more than one area of their tax return so that it gets taxed twice - they won’t hear a squeak out of HMRC.

Self Assessment is exactly what it says it is. You’ve “self-assessed” how much tax you owe. The end.

I have always been a huge advocate of people taking responsibility for their own bookkeeping. But there is an inherent danger in trying to do that with no training.

Which is why I set up Springreach Training & Coaching. I’m not here to train the next generation of bookkeepers. I’m here to train self-employed small business owners how to handle their own bookkeeping, so they can make sense of their business finances, get their tax right and stay on the right side of HMRC.

I run a monthly membership, the Springreach DIY Bookkeeping Community, available until the end of June at a preferential rate of £15 a month. You can find further details about what’s included and how to join in the comments below.

I’ll also be announcing some bookkeeping and Self Assessment workshop dates next month. Sign up to my mailing list to receive the details directly to your inbox. You can unsubscribe at any time.

, ,