New MIP - Is Tax Software necessary?

Laura8192

I am about to be made redundant and have decided to see this as a positive opportunity to become self-employed, rather than dwell on the negatives of losing my job!

I have been using this forum loads, it is so helpful. I have contacted a local MIP regarding becoming my mentor and providing continuality cover, I am meeting her next week.

I am currently completing a business plan and I am registering as a MIP whilst I work towards experience to become licensed.

I have looked into software requirements, and think I will go for VT+ and Final Acounts, and MoneySoft to start with.

I have a question though, I have seen some threads regarding Ftax and Taxcalc. Is this software required to adequately run my business? I have completed self assessment tax returns online for family, using the online submission. What do these Tax software packages offer?

Thank you for your help.
Laura

Gem7321

I used to do my tax comps manually and then file them online using HMRC website but now I have more self assessments it's much too time-consuming. It's much easier to have the software do the calculations for you and then click a button to file.

But no, it's not absolutely necessary to have.

burg

It's not a necessity but can save a great amount of time and hassle.

I've never used the HMRC system but have down paper returns back in the day and using software is so much simpler.

T.C.

If you are only doing individual tax returns, then the HMRC is sufficient.

Laura8192

thanks everyone, think I'll start without and see how I go, can always buy some software at a later date.

JodieR

The first year I was self employed I used HMRC's software for tax returns but the following year I couldn't find a way of printing out a tax return which looked like a tax return, it only printed out a list of box numbers and the amounts alongside which didn't look at all professional so I switched to FTax. Hopefully this has been rectified by now though!

Monsoon

I used HMRC free software until I got to about 10 clients, by which time it was a pain in the butt (I understand their software is better now). I switched to FTax and haven't looked back. That was about 2005 or 2006.

Hollysan

I use proprietory software for limited companies, but I still use the HMRC software for individual tax returns because I know it really well and it doesn't take very long at all - it's pretty good.

I tried the HMRC CT tax return software a couple of years ago and it was a nightmare - never again. You can buy lots of good stand-alone software for tax only and I agree with the others - you will reach a critical point where you feel you need it....

Good luck with your practice.

Hollysan