Record keeping, Simpler Income Tax and mobile applications

Record keeping and mobile applications

One of HM Revenue & Customs' (HMRC's) aims is to make it as easy as possible for customers to get their record keeping right and ensure they file and pay correctly and on time. Keeping regular and accurate records will help small and medium sized enterprises (SMEs) with turnover below the VAT threshold, and/or customers claiming Universal Credit, to file and pay the correct amount.

To meet this aim, HMRC has worked with the software industry to establish a catalogue of mobile and desktop applications/software to help small businesses with their record keeping.

Simpler Income Tax - cash basis and simplified expenses

In March 2013, the Government announced the introduction of two simpler income tax measures for small businesses, cash basis and simplified expenses, from the 2013/14 tax year.

Eligible self-employed individuals or partnerships will be able to choose to be taxed on the 'cash basis', avoiding the need to make year-end tax adjustments required under current rules that were designed for more complex businesses.

Simpler Income Tax: cash basis (Opens new window)

All unincorporated businesses will be able to use flat-rate 'simplified expenses' for any or all of the following expenses:

  • business costs for vehicles
  • business use of your home
  • private use of business premises as a home

Simpler Income Tax: simplified expenses (Opens new window)

A number of software companies have developed record keeping applications, some of which are free, for both mobile record keeping and Simpler Income Tax. These can be found here.

Record keeping and Simpler Income Tax applications/software

Software developers

Any software developers interested in developing products to help small businesses with their record keeping, should contact the HMRC Software Developers Support Team at SDS team for technical specifications and to register an interest.