Revolutionise your finances by digital accounting
Ryan Scott • 28 April 2025
How Digital Accounting Can Transform Your Business
Over the past five years, businesses have had to adapt to big economic changes, no matter what industry they’re in. The sudden switch to remote work and strict lockdown rules forced companies to rethink how they operate just to keep things running. Online tools became a lifeline for staying connected and keeping businesses afloat.
Now, tools like cloud-based accounting software, automation, and real-time financial tracking aren’t just nice-to-haves—they’re must-haves. They let you manage your finances, keep an eye on expenses, and stay on top of compliance, all from anywhere.
Digital accounting has completely changed how businesses handle their finances, offering better efficiency, accuracy, and insights compared to old-school methods. For UK businesses, it’s also a requirement to meet HMRC’s Making Tax Digital (MTD) rules, which demand digital record-keeping and VAT filings through compatible software. But beyond just following the rules, digital accounting brings a ton of benefits that can help your business grow.
What Is Digital Business Accounting?
Digital accounting means using cloud-based software to track, manage, and process your financial transactions. Unlike traditional accounting—think manual paperwork, endless spreadsheets, and outdated systems—digital accounting automates the boring stuff, cuts down on mistakes, and makes everything run smoother.
With platforms like Xero and QuickBooks, you can handle invoicing, payroll, expense tracking, and tax filings with ease. These tools come with simple dashboards, automation features, and integrations that make managing your finances a breeze.
If you need help switching to digital accounting, the team at SBX Accountants
is here to guide you.
Why Switch to Digital Accounting? The Key Benefits
Here’s why going digital can be a game-changer for your business:
- More Accuracy
Doing things by hand often leads to mistakes, which can mess up your finances or get you in trouble with compliance. Digital tools handle calculations for you, keeping your records spot-on and lowering the risk of costly errors in your tax filings.
- Saves You Time
Digital accounting makes tasks like invoicing, expense tracking, and bank reconciliations quick and easy. This frees up your time to focus on growing your business. Plus, cloud platforms let you access your data instantly—no more digging through paperwork—and your accountant can jump in without needing to swap documents.
- Stays Compliant with MTD
If your business is VAT-registered, you need to follow MTD rules by keeping digital records and filing taxes online. Digital software makes this simple, helping you avoid penalties and stay on top of your tax duties. Starting in 2026/27, MTD rules will apply to businesses earning over £20,000, with self-assessment returns due by January 31, 2028.
- Gives You Real-Time Insights
With digital tools, you can see up-to-date info on your income, expenses, cash flow, and profits. This helps you make smart decisions and plan ahead with confidence.
- Saves Money
Working with SBX Accountants can help you save on taxes, avoid mistakes, and even includes access to QuickBooks, which can save you over £300 a year. Fewer errors and less admin time mean more savings for your business.
- Access Anywhere
Cloud-based accounting lets you manage your finances from anywhere - perfect for remote teams or if you’re always on the go. You’ll never miss a beat, no matter where you are.
Ready to Make the Switch?
Digital accounting can transform how you run your business, saving you time, money, and stress. Contact
SBX Accountants today to get started with digital solutions and take your business to the next level!
If you’re running your business through a limited company - or thinking about incorporating - understanding how dividends work can be a game-changer when it comes to your take-home pay . At SBX Accountants , we specialise in helping business owners like you get the most from your earnings while staying fully HMRC-compliant. One of the most effective ways to do that? Dividends. Dividends are a smart, tax-efficient way to extract profits from your company - but it’s essential to know how they work and how to use them wisely. In this guide, we’ll break it all down and show you how SBX can support you in figuring out the best structure for your business. What Are Dividends (And Why Do They Matter)? Dividends are payments made to shareholders - typically from a company’s retained profits. If you’re both a director and shareholder in your limited company, you can pay yourself dividends in addition to a salary. Why does this matter? Because dividends are taxed at lower rates than regular income, and they’re not subject to National Insurance Contributions (NICs). That means more money in your pocket, and less to the taxman. At SBX, we help you build a smart remuneration strategy that uses dividends to your advantage - without overstepping any legal or compliance boundaries.
If you're running a business as a sole trader, it’s your responsibility to make sure you’re paying the correct amount of Income Tax and National Insurance. To do this, most sole traders need to register for Self Assessment with HMRC – but the rules can vary depending on how much you earn and whether you’re also employed. When Does a Sole Trader Need to Register for Self Assessment? As a self-employed individual , you must register for Self Assessment so you can file an annual tax return. This allows HMRC to calculate what you owe in tax and National Insurance contributions. The general rule is: 🔹 If you earn more than £1,000 from self-employment in a single tax year (6 April to 5 April), you must register for Self Assessment . This applies whether your business is full-time, part-time, or even a casual side hustle
The new tax year is here again! If you're a business owner, sole trader, or anyone earning income that isn’t taxed at source, it’s time to make sure you’re up to date on your Self Assessment deadlines. Add these important dates to your diary now and stay ahead of the curve. Staying on top of HMRC’s deadlines isn’t just good admin—it helps you avoid penalties, manage your cash flow, and plan your finances more effectively. To make it easy, we’ve laid out all the key Self Assessment dates for 2025/26, plus some practical insights to help you stay in control. Need to compare with last year’s calendar? You can check out our blog covering the 2023/24 tax week dates for a full comparison. April Tax Year Transition: From 2024/25 to 2025/26 As one tax year wraps up and another begins, here’s what you need to know: 5 April 2025 – End of the 2024/25 Tax Year This is your final chance to use any tax reliefs or allowances for the 2024/25 year. Make sure you’ve reviewed your income, expenses, and any potential claims, such as pension contributions, charitable donations, or business expenses to help minimise your tax liability. 6 April 2025 – Start of the 2025/26 Tax Year A new financial year is a great opportunity to review your bookkeeping processes, especially with Making Tax Digital changes on the horizon. Double-check your new tax codes and allowances and update your financial plan accordingly. Self Assessment Deadlines: What to Watch For Although the tax year starts in April, most Self Assessment deadlines come later—apart from one key date for late 2023/24 submissions. Here are the essential ones to note: 30 April 2025 – Final Deadline for 2023/24 Late Returns Haven’t filed your 2023/24 tax return yet? This is your last chance before daily penalties of £10 (up to 90 days) kick in from 1 May. Don’t delay! 31 July 2025 – Second Payment on Account for 2024/25 If you make payments on account, this is when your second instalment for the 2024/25 tax year is due. These payments help spread your tax bill over the year to avoid a hefty lump sum in January. 5 October 2025 – Deadline to Register for Self Assessment Newly self-employed or earned untaxed income in 2024/25? You must register with HMRC by this date to file your return. Late registration can lead to delays and potential penalties. 31 October 2025 – Paper Tax Return Deadline Still filing on paper? This is your final date to submit. Online filing gives you until January and includes instant confirmation. 30 December 2025 – PAYE Tax Collection Option If you're employed and owe less than £3,000 in tax, submitting your online return by this date may let HMRC collect what you owe via your tax code—spreading the cost across the year. 31 January 2026 – Final Filing & Payment Deadline This is the big one! By now, you must have: • Submitted your 2024/25 Self Assessment tax return • Paid any tax owed for 2024/25 • Made your first payment on account for 2025/26 (if applicable) Missing this deadline triggers an automatic £100 fine and further penalties the longer it goes unpaid. 31 July 2026 – Second Payment on Account for 2025/26 Time for your second advance payment for the 2025/26 tax year. Payments are based on your previous return, so if your income has dropped, you might be able to reduce this—worth checking in with your accountant. What’s New in 2025/26? Making Tax Digital (MTD) Is Almost Here Starting 6 April 2026, if you earn over £50,000 from self-employment or property, you’ll need to follow MTD rules—keeping digital records and sending HMRC quarterly updates. Those earning over £30,000 will be included from 2027. Personal Allowance Still Frozen The personal allowance remains at £12,570. With inflation, more people may be pushed into tax brackets, so it’s worth reviewing your income and tax code early in the year. Whether you ar e a Sole Trader , Partner , or D irector , SBX have custom self-assessment services tailored to you. For further advice or information on Self Assessment deadlines and managing your taxes, Contact us.
