CM Advisory

𝗛𝗠𝗥𝗖 𝗜𝘀 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝘆𝗶𝗻𝗴 𝘁𝗵𝗲 𝗩𝗔𝗧 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗼𝗼𝗱𝘀 𝗦𝗰𝗵𝗲𝗺𝗲

𝗛𝗲𝗿𝗲'𝘀 𝗪𝗵𝗮𝘁 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗞𝗻𝗼𝘄
From 𝟮𝟵 𝗝𝘂𝗹𝘆 𝟮𝟬𝟮𝟲, HMRC is introducing important changes to the 𝗩𝗔𝗧 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗼𝗼𝗱𝘀 𝗦𝗰𝗵𝗲𝗺𝗲 (𝗖𝗚𝗦).

If your business makes significant capital investments, these changes could reduce your VAT administration.

𝗪𝗵𝗮𝘁'𝘀 𝗖𝗵𝗮𝗻𝗴𝗶𝗻𝗴?

✅ 𝗖𝗼𝗺𝗽𝘂𝘁𝗲𝗿𝘀 𝗮𝗻𝗱 𝗰𝗼𝗺𝗽𝘂𝘁𝗲𝗿 𝗲𝗾𝘂𝗶𝗽𝗺𝗲𝗻𝘁 will no longer fall within the 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗼𝗼𝗱𝘀 𝗦𝗰𝗵𝗲𝗺𝗲.

✅ The expenditure threshold for 𝗹𝗮𝗻𝗱, 𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴𝘀 𝗮𝗻𝗱 𝗰𝗶𝘃𝗶𝗹 𝗲𝗻𝗴𝗶𝗻𝗲𝗲𝗿𝗶𝗻𝗴 𝘄𝗼𝗿𝗸𝘀 will increase from £𝟮𝟱𝟬,𝟬𝟬𝟬 𝘁𝗼 £𝟲𝟬𝟬,𝟬𝟬𝟬 (excluding VAT).

𝗪𝗵𝘆 𝗗𝗼𝗲𝘀 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿?

For many businesses, these changes mean:

• Fewer long-term VAT adjustment calculations
• Simpler VAT administration
• Reduced compliance burden on qualifying capital assets

While not every business will be affected, those planning major property investments or managing capital expenditure should understand how these changes may impact their VAT processes.

This is a reminder that VAT isn't just about submitting returns. Keeping up with HMRC updates can help businesses remain compliant while reducing unnecessary administrative work.

At 𝗖𝗠 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆, we monitor HMRC developments so our clients can focus on running their businesses with confidence.

Could these changes affect your business or future investment plans? We'd love to hear your thoughts.

𝗪𝗵𝗮𝘁 𝗥𝗲𝗰𝗼𝗿𝗱𝘀 𝗠𝘂𝘀𝘁 𝗦𝗼𝗹𝗲 𝗧𝗿𝗮𝗱𝗲𝗿𝘀 𝗮𝗻𝗱 𝗟𝗮𝗻𝗱𝗹𝗼𝗿𝗱𝘀 𝗞𝗲𝗲𝗽 𝗨𝗻𝗱𝗲𝗿 𝗠𝗮𝗸𝗶𝗻𝗴 𝗧𝗮𝘅 𝗗𝗶𝗴𝗶𝘁𝗮𝗹?

One of the biggest misconceptions about 𝗠𝗮𝗸𝗶𝗻𝗴 𝗧𝗮𝘅 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 (𝗠𝗧𝗗) 𝗳𝗼𝗿 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 is that it's simply about buying accounting software.

It isn't.

The real requirement is 𝗸𝗲𝗲𝗽𝗶𝗻𝗴 𝗮𝗰𝗰𝘂𝗿𝗮𝘁𝗲 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗿𝗲𝗰𝗼𝗿𝗱𝘀 𝘁𝗵𝗿𝗼𝘂𝗴𝗵𝗼𝘂𝘁 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿. Without them, meeting your MTD obligations becomes much more difficult.

If you're a 𝘀𝗼𝗹𝗲 𝘁𝗿𝗮𝗱𝗲𝗿 𝗼𝗿 𝗹𝗮𝗻𝗱𝗹𝗼𝗿𝗱, here are the key records you should be maintaining:

📌 𝗜𝗻𝗰𝗼𝗺𝗲

Keep a digital record of all business or rental income, including the date, amount received, and source.

📌 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀

Record allowable business expenses as they occur, supported by invoices, receipts, or other evidence.

📌 𝗣𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀

If you earn rental income, maintain digital records of expenses such as repairs, insurance, agent fees, and mortgage interest (where applicable).

📌 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗔𝘀𝘀𝗲𝘁𝘀

Keep records of assets purchased for your business, as these may affect your tax position over several years.

📌 𝗦𝘂𝗽𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗗𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝘀

Invoices, receipts, bank statements, and other supporting evidence should be retained to support your digital records.

𝗪𝗵𝘆 𝗗𝗼𝗲𝘀 𝗧𝗵𝗶𝘀 𝗠𝗮𝘁𝘁𝗲𝗿?

Waiting until the end of the tax year to organize paperwork is no longer a practical approach under MTD.

Maintaining accurate digital records throughout the year helps you:

✔️ Prepare quarterly updates with confidence

✔️ Reduce bookkeeping errors

✔️ Save time at year-end

✔️ Stay compliant with HMRC requirements

Making Tax Digital isn't just changing 𝗵𝗼𝘄 𝘆𝗼𝘂 𝘀𝘂𝗯𝗺𝗶𝘁 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 to HMRC - it's changing 𝗵𝗼𝘄 𝘆𝗼𝘂 𝗺𝗮𝗻𝗮𝗴𝗲 𝘆𝗼𝘂𝗿 𝗿𝗲𝗰𝗼𝗿𝗱𝘀 𝗲𝘃𝗲𝗿𝘆 𝗱𝗮𝘆.

At 𝗖𝗠 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆, we help sole traders and landlords implement practical bookkeeping systems that support MTD compliance and make day-to-day financial management easier.

𝗪𝗵𝗶𝗰𝗵 𝗿𝗲𝗰𝗼𝗿𝗱𝘀 𝗱𝗼 𝘆𝗼𝘂 𝗰𝘂𝗿𝗿𝗲𝗻𝘁𝗹𝘆 𝗳𝗶𝗻𝗱 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗱𝗶𝗳𝗳𝗶𝗰𝘂𝗹𝘁 𝘁𝗼 𝗸𝗲𝗲𝗽 𝗼𝗿𝗴𝗮𝗻𝗶𝘀𝗲𝗱 - 𝗶𝗻𝗰𝗼𝗺𝗲, 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀, 𝗼𝗿 𝗿𝗲𝗰𝗲𝗶𝗽𝘁𝘀?

𝗧𝗵𝗶𝗻𝗸 𝗬𝗼𝘂'𝗿𝗲 𝗥𝗲𝗮𝗱𝘆 𝗳𝗼𝗿 𝗠𝗮𝗸𝗶𝗻𝗴 𝗧𝗮𝘅 𝗗𝗶𝗴𝗶𝘁𝗮𝗹? 𝗖𝗵𝗲𝗰𝗸 𝗧𝗵𝗲𝘀𝗲 𝟱 𝗧𝗵𝗶𝗻𝗴𝘀 𝗙𝗶𝗿𝘀𝘁.

Many sole traders and landlords know that Making Tax Digital (MTD) for Income Tax is on the way.

What many don't know is what they need to do to become compliant.

Here’s a simple checklist to help you prepare:

✅ 𝟭. 𝗞𝗲𝗲𝗽 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗥𝗲𝗰𝗼𝗿𝗱𝘀

Your income and expenses should be recorded digitally throughout the year—not reconstructed at year-end.

✅ 𝟮. 𝗨𝘀𝗲 𝗠𝗧𝗗-𝗖𝗼𝗺𝗽𝗮𝘁𝗶𝗯𝗹𝗲 𝗦𝗼𝗳𝘁𝘄𝗮𝗿𝗲

Compatible software allows you to maintain digital records and submit the required updates to HMRC.

✅ 𝟯. 𝗞𝗲𝗲𝗽 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗥𝗲𝗰𝗼𝗿𝗱𝘀 𝗨𝗽 𝘁𝗼 𝗗𝗮𝘁𝗲

Regular bookkeeping makes quarterly submissions much easier and reduces the risk of errors.

✅ 𝟰. 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗡𝗲𝘄 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗣𝗿𝗼𝗰𝗲𝘀𝘀

MTD introduces quarterly updates and a final declaration, replacing the traditional once-a-year approach for those within scope.

✅ 𝟱. 𝗗𝗼𝗻'𝘁 𝗪𝗮𝗶𝘁 𝗨𝗻𝘁𝗶𝗹 𝘁𝗵𝗲 𝗗𝗲𝗮𝗱𝗹𝗶𝗻𝗲

Leaving everything until the last minute can lead to unnecessary stress, missing information, and avoidable mistakes.

Making Tax Digital isn't just about using new software—it's about changing how financial records are maintained throughout the year.

At 𝗖𝗠 𝗔𝗱𝘃𝗶𝘀𝗼𝗿𝘆, we're helping businesses prepare for the transition so they can move forward with confidence.

Businesses that prepare early are likely to find the transition much smoother than those who wait until the deadline.

𝗛𝗼𝘄 𝗮𝗿𝗲 𝘆𝗼𝘂 𝗽𝗿𝗲𝗽𝗮𝗿𝗶𝗻𝗴 𝗳𝗼𝗿 𝗠𝗧𝗗? Have you already moved to digital bookkeeping, or are you still planning your transition?
Let us know.

𝐌𝐨𝐬𝐭 𝐬𝐦𝐚𝐥𝐥 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐨𝐰𝐧𝐞𝐫𝐬 𝐝𝐨𝐧'𝐭 𝐟𝐚𝐢𝐥 𝐛𝐞𝐜𝐚𝐮𝐬𝐞 𝐨𝐟 𝐚 𝐛𝐚𝐝 𝐩𝐫𝐨𝐝𝐮𝐜𝐭. 𝐓𝐡𝐞𝐲 𝐟𝐚𝐢𝐥 𝐛𝐞𝐜𝐚𝐮𝐬𝐞 𝐭𝐡𝐞𝐲 𝐜𝐨𝐮𝐥𝐝𝐧'𝐭 𝐬𝐞𝐞 𝐰𝐡𝐚𝐭 𝐰𝐚𝐬 𝐡𝐚𝐩𝐩𝐞𝐧𝐢𝐧𝐠 𝐢𝐧 𝐭𝐡𝐞𝐢𝐫 𝐟𝐢𝐧𝐚𝐧𝐜𝐞𝐬 𝐮𝐧𝐭𝐢𝐥 𝐢𝐭 𝐰𝐚𝐬 𝐭𝐨𝐨 𝐥𝐚𝐭𝐞.

𝐆𝐨𝐨𝐝 𝐛𝐨𝐨𝐤𝐤𝐞𝐞𝐩𝐢𝐧𝐠 𝐢𝐬𝐧'𝐭 𝐣𝐮𝐬𝐭 𝐚𝐛𝐨𝐮𝐭 𝐤𝐞𝐞𝐩𝐢𝐧𝐠 𝐇𝐌𝐑𝐂 𝐡𝐚𝐩𝐩𝐲. Done consistently, it gives you a real-time picture of your business, where money is coming in, where it's quietly leaking out, and whether you're actually profitable or just busy.

Here are 5 bookkeeping habits that make a genuine difference:

𝟏. 𝐊𝐞𝐞𝐩 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 & 𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐟𝐢𝐧𝐚𝐧𝐜𝐞𝐬 𝐬𝐞𝐩𝐚𝐫𝐚𝐭𝐞
The moment they mix, your numbers become unreliable. Open a dedicated business account if you haven't already.

𝟐. 𝐑𝐞𝐜𝐨𝐫𝐝 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬 𝐫𝐞𝐠𝐮𝐥𝐚𝐫𝐥𝐲
Weekly is better than monthly. Monthly is better than never. The more current your records, the more useful they are.

𝟑. 𝐒𝐚𝐯𝐞 𝐞𝐯𝐞𝐫𝐲 𝐫𝐞𝐜𝐞𝐢𝐩𝐭
HMRC can ask for evidence of any expense claim going back several years. A simple folder or scanning app takes seconds and saves significant stress.

𝟒. 𝐑𝐞𝐜𝐨𝐧𝐜𝐢𝐥𝐞 𝐲𝐨𝐮𝐫 𝐛𝐚𝐧𝐤 𝐚𝐜𝐜𝐨𝐮𝐧𝐭 𝐦𝐨𝐧𝐭𝐡𝐥𝐲This is how you catch errors, duplicate charges, or missing payments before they become bigger problems.

𝟓. 𝐃𝐨𝐧'𝐭 𝐥𝐞𝐚𝐯𝐞 𝐭𝐚𝐱 𝐮𝐧𝐭𝐢𝐥 𝐭𝐡𝐞 𝐝𝐞𝐚𝐝𝐥𝐢𝐧𝐞
Rushing tax returns increases the risk of mistakes and missed reliefs. Businesses that plan ahead almost always pay less and stress less.

Good bookkeeping isn't a chore. It's the financial clarity that helps you make smarter decisions, manage cash flow with confidence, and walk into your year-end without dreading it.

At 𝐂𝐌 𝐀𝐝𝐯𝐢𝐬𝐨𝐫𝐲, we work with UK small businesses to keep their finances organised, accurate and stress-free throughout the year, not just when a deadline is approaching. Whether you're a sole trader or a growing limited company, having reliable numbers behind you changes how you run your business.

Which of these five habits do you find hardest to stay on top of? Let us know in the comments.

If you'd like to talk through how your bookkeeping is currently set up, we're happy to have that conversation with no obligation.

Visit us at cmadvisoryuk.org or drop us a message at
[email protected]

🔐 HMRC Multi-Factor Authentication (MFA) Update for Tax Agents

HMRC has announced the rollout of Multi-Factor Authentication (MFA) for all remaining agent accounts to strengthen security and better protect agents and their clients from evolving cyber threats.

📅 Key Dates:
• Choose MFA activation on 15 July 2026 (opt in by 30 June 2026)
• Choose MFA activation on 19 August 2026 (opt in by 31 July 2026)
• All remaining agent accounts will have MFA activated between 28 September and 15 October 2026

Agents can select their preferred activation date through an online form available when signing in to their Agent Services Account or HMRC Online Services for Agents account.

✅ Now is the time to prepare:
• Review your MFA settings
• Update outdated authentication methods
• Ensure administrators and team members are ready
• Familiarise yourself with the updated Tax Agent's Handbook guidance

Enhanced security is no longer optional—it's an essential step in protecting client data and maintaining trust in the digital tax environment.

Running a business is demanding enough without worrying about bookkeeping deadlines, VAT compliance, or year-end accounts.

At CM Advisory, we help UK businesses stay financially organised, compliant, and informed through reliable accounting support tailored to their needs.

Our services include:

✅ Bookkeeping & Financial Record Management
✅ VAT Returns & HMRC Compliance
✅ Self Assessment Tax Returns
✅ Annual Accounts Preparation
✅ Financial Reporting & Business Insights

We believe accounting should be more than a compliance exercise. Accurate financial information helps business owners make better decisions, improve cash flow visibility, and focus on sustainable growth.

Whether you're a sole trader, limited company, contractor, or growing business, our team provides dependable support so you can spend less time on paperwork and more time building your business.

📧 [email protected]
🌐 https://cmadvisoryuk.org/

Follow our page for practical accounting tips, tax updates, and insights for UK business owners.