Digital Banking Platform Monzo and Xero Provide Tax Filing Tips for Self-Employed Professionals

UK challenger bank Monzo has announced several updates. The digital bank confirmed recently that the Year in Monzo 2020 is now available via its app.

As explained by the banking challenger, the Year in Monzo shows customers key insights into how they spent, saved, and shared funds with friends while working towards their financial goals during the past year. As confirmed by Monzo, the new option is totally private, however, it’s “shareable if you like.” So nobody else will be able to view your Year in Monzo unless users decide to share it, Monzo clarified.

The Monzo team noted that they wanted this particular Year in Monzo to “stay true” to what the bank has done before. However, there’s really “no getting away from the fact this hasn’t been a normal year for most people,” the bank acknowledged. Monzo also mentioned that customers’ relationship with money may have been a lot more strained than normal, and “at the very least you likely spent and saved differently than you have done in the past.”

(Note: to learn more about this option, check here.)

Monzo has also shared some tips for self-employed professionals like freelancers or gig-economy workers. The Monzo team notes that if you’re about to start your Self Assessment, then their colleagues over at Xero have assisted them with pulling together their “top” tips to make filing your Self Assessment tax return “a breeze.”

Monzo further noted that if you’re a sole trader or a partner in a business partnership, the Self Assessment deadline is now approaching fast. The bank confirmed that before the 31st of January 2021, sole traders who have earned over £1,000 (before subtracting any amount that qualifies for tax relief) and business partners will be required to complete a Self Assessment tax return online. Although this may seem quite imposing or time-consuming, Monzo claims that it’s fairly straightforward.

Monzo realizes that there’s nothing worse than the stress of having to rush just to complete a task the night before the deadline. In order to spare yourself this hassle or trouble (and the extra fee that HMRC can charge for late submissions), you must make sure all your records and other pertinent details are up to date and complete before the deadline, and then make sure to get the paperwork reviewed by an accountant, Monzo recommended.

Monzo also mentioned that the government in the UK will be introducing Making Tax Digital and will aim to encourage local companies or businesses to move their finances and record-keeping to an online environment. Monzo and Xero confirmed that this announcement has come with “a whole heap of benefits,” which includes the option to review your business’s finances “at the click of a button,” which makes the Self Assessment process a lot simpler.

To really benefit from these new options, Monzo and Xero suggested that you should ensure that your company’s technology is up to date and select a provider that has integrated with Making Tax Digital.

Adopting the appropriate Cloud software tools can also help your company reduce errors and can automatically detect and prevent other costly mistakes. Cloud solutions are also able to update information in real-time in order to offer a comprehensive record of the business’s finances “at the click of a button.”

The Xero team notes:

“Tax doesn’t need to be taxing, and neither does financial management. At Xero, we want you to be able to spend less time on finances and paperwork, and more time doing the things that inspired you to start your business in the first place. That’s why we’ve launched our Education Month starting from 1st February 2021, a month full of live webinars, downloadable resources and expert panelists to make managing your business finances easier so you can spend more time doing what you love. Register online now, completely free.”

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