How can Monzo help my business prepare for Making Tax Digital?
Here are a few tips with good habits that you can build now that will help you be prepared for Making Tax Digital, the new HMRC scheme to digitise tax filings and payments:
Sign up to the tax submission tool waitlist!
Monzo is building a new tool that will allow sole traders and landlords to file with HMRC directly from the Monzo app. The tool is HMRC recognised and will be available to Monzo sole trader customers on any account plan for free!
Head to the Making Tax Digital section in the app to find out more and sign up to our waitlist! (The Making Tax Digital space in the app/web is only available to Monzo sole trader customers)
Snap your receipts!
Practice photographing all your receipts and attaching those photos to the corresponding transactions in the Monzo app.
By tapping on the transaction in the app, you can either take a photo or add a photo that you previously took of the receipt to be linked to the transaction, meaning you don’t need to keep the receipt itself.
Categorise your payments
Categorise your transactions with the appropriate summary by tapping on the transaction in the Monzo app then Add category.
Categorising will help you stay on top of your income and spending, as well as help you understand how the money flows in your business. (This also helps you get more out of other Monzo features like Insights and the monthly cash flow report.)
Connect your other business accounts through Open Banking (Pro/Team customers only)
If you have business accounts for your business with other providers, we can connect them to the Monzo app.
Through our connection with Open Banking, you can connect any business accounts that you hold with most other banks to our app so that you can get more visibility over all of your business finances, and these accounts can be included in other tools such as Insights.
Use Insights and the monthly cash flow report
Insights and the monthly cash flow report are both Monzo tools that help you get a clear image of the monthly movements of funds for your business.
Tap on the Insights tab at the bottom of the app to get started, in this space you can see a summary of your income and expenses as well as access our monthly cash flow report.
Set up Pots
Pots can be used to set aside money that your business receives in your Monzo business account. This money is kept aside so that you can use it to pay your tax bill when you need to.
If you use our Monzo Business Pro or Team plans, you can set up a Tax Pot, which automatically saves a percentage of any income received into Monzo so you don’t need to manually move the money yourself.
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