Making Tax Digital for freelancers

Making Tax Digital has been easier than I expected. I wasn't sure how it would work initially, so I gave myself plenty of time to get familiar with the software and the process before I needed to submit my first update. One of the first steps was choosing HMRC compatible software. I switched to a bank that included FreeAgent at no extra cost, which made getting started easier.

I've now submitted my first quarterly update. The biggest adjustment has been getting used to recording and categorising transactions within the software. I was already keeping my bookkeeping up to date in a spreadsheet, so for me it was more about adapting my existing process and moving it into accounting software. On the one occasion I needed help, the FreeAgent support team was quick to resolve my query.

My advice to anyone preparing for Making Tax Digital would be to start early, spend some time getting familiar with the software, and make use of the guidance and support that's available online. Giving myself a few months to adapt my existing bookkeeping process meant I felt confident by the time I needed to submit my first quarterly update.

I worked with my accountant who was amazing! She gave me the heads up far in advance so I could start using an accounting software and get into good habits ahead of the switch.

She submitted the first MTD and it's been as smooth as usual with zero stress. She's handled everything and it looks very straightforward. All I need to do is continue to do what I usually do and keep good habits using the software.

My accountant is so good that I trust her completely and I didn't really feel anxious about it. (maybe that was a bit naive of me I don't know) I'm also extremely organised with my accounting and still use my spreadsheet to track invoices sent, due and paid.