What Taxmo Covers and What It Does Not

A plain list of what Taxmo does for UK sole traders, landlords, limited companies and CIS contractors, and what it does not do. Where something is not available yet, it says so.

Sole traders and freelancers

  • Yes: What does Taxmo cover for a UK sole trader or freelancer?
  • Yes: Can I photograph a receipt on my phone and have it turned into an expense?
  • Yes: How long do I need to keep receipts, and does Taxmo keep them?
  • Partly: How does Taxmo get my bank transactions, and does it sync automatically?
  • Coming soon: Does Taxmo file my Self Assessment return with HMRC?
  • Coming soon: Can Taxmo send my quarterly updates for Making Tax Digital for Income Tax?
  • Partly: I earn a little on the side. Can Taxmo track it and show what I might owe?

VAT-registered businesses

  • Yes: Can Taxmo file my VAT return directly to HMRC under Making Tax Digital?
  • No: Can I keep my VAT records in a spreadsheet and use Taxmo to submit them?
  • Yes: Does Taxmo support the VAT Flat Rate Scheme?

Landlords

  • Partly: Does Taxmo handle Making Tax Digital and Self Assessment for landlords?

Limited companies and contractors

  • Partly: Does Taxmo work for a UK limited company?
  • No: Does Taxmo file Corporation Tax returns or annual accounts for a limited company?
  • Yes: I am a contractor choosing between a limited company and sole trader: does Taxmo work for both?
  • No: Does Taxmo handle IR35 status or the off-payroll paperwork?
  • No: Does Taxmo do payroll?

Construction Industry Scheme (CIS)

  • Partly: Can Taxmo handle CIS for a contractor who pays subcontractors?
  • No: Can Taxmo track CIS deductions taken from me as a subcontractor and help me reclaim them?

About this page

General information, not tax advice. Rates, thresholds and dates are set by HMRC and change, so verify them on GOV.UK. Plans and limits change too, so the pricing page has the current ones.

Common questions

What does Taxmo cover for a UK sole trader or freelancer?

Taxmo covers the day-to-day records and the tax position of a sole trader: invoicing, including quotes with deposits and recurring and multi-currency invoices, contacts and products, income and expense records, receipt capture, bank transactions imported by Open Banking or CSV, imports from Excel or CSV files, mileage at HMRC approved rates, profit and loss reporting, and an Income Tax and National Insurance estimate so you know what to set aside. There is a free plan with no time limit and no card needed. Some features need a paid plan, and the pricing page has the current plans.

Can I photograph a receipt on my phone and have it turned into an expense?

Yes. You can photograph or upload a receipt in the app, send it to Taxmo on WhatsApp, or forward it to your Taxmo email address, and Taxmo reads it and fills in the expense for you to check. Receipt capture needs a paid plan, and email forwarding is on a higher plan than the rest, so the pricing page has the detail.

How long do I need to keep receipts, and does Taxmo keep them?

For Self Assessment, HMRC says to keep your business records for at least 5 years after the 31 January submission deadline of the tax year they relate to. Other taxes and company records have their own rules, so verify on GOV.UK for your case. Taxmo keeps the receipt image attached to the entry as evidence, so the record sits with the figure. Whether a photograph is enough for your situation is a question for GOV.UK or an accountant, not something Taxmo can promise.

How does Taxmo get my bank transactions, and does it sync automatically?

It does not sync in the background. An Open Banking connection gives Taxmo read-only access that you authorise at your own bank, and it is an on-demand import that brings in the most recent 90 days each time. CSV statement upload has no history limit and recognises the layouts of Barclays, HSBC, Lloyds, NatWest, RBS, Starling, Monzo and Revolut, so it is the route for older periods. Imported transactions wait in a review queue and are left out of your figures until you approve them.

Does Taxmo file my Self Assessment return with HMRC?

Not yet. Taxmo does not submit Self Assessment returns to HMRC today, and the Self Assessment screen in the app is marked as coming soon. What Taxmo does is keep your position up to date through the year, estimate the Income Tax and National Insurance to set aside, and give you a filing guide so you can file with HMRC yourself.

Can Taxmo send my quarterly updates for Making Tax Digital for Income Tax?

Not yet. Quarterly updates, the End of Period Statement and the Final Declaration cannot be submitted from Taxmo today, and the MTD Income Tax screen is marked as coming soon. Who has to join and from when is set by HMRC and has changed before, so verify on GOV.UK for the qualifying income band and start date that apply to you.

I earn a little on the side. Can Taxmo track it and show what I might owe?

Taxmo can keep side income and its costs alongside everything else and estimate the tax on the total. Whether you have to tell HMRC depends on your total income and on the trading allowance, which HMRC sets, so verify on GOV.UK rather than relying on an estimate.

Can Taxmo file my VAT return directly to HMRC under Making Tax Digital?

Yes, for VAT-registered businesses on a paid plan. You authorise Taxmo at HMRC's own sign-in, so Taxmo never sees your Government Gateway credentials. Taxmo reads the open obligations from HMRC, calculates the nine boxes from your approved entries, and runs a pre-filing checklist before anything is sent. Nothing is transmitted without your explicit declaration, and HMRC's confirmation is stored in your filing history.

Can I keep my VAT records in a spreadsheet and use Taxmo to submit them?

No. Taxmo is not bridging software for a spreadsheet. Your VAT return is calculated from the entries you keep in Taxmo, so the figures need to be in Taxmo as entries first. You can import income and expenses from an Excel or CSV file as entries, and the return is then calculated from those entries once you approve them. The file is not submitted to HMRC as it stands.

Does Taxmo support the VAT Flat Rate Scheme?

Taxmo has a Flat Rate Scheme assistant for VAT-registered businesses, and a guide that compares the scheme with standard VAT accounting. Eligibility and the percentages are set by HMRC, so verify them on GOV.UK before joining.

Does Taxmo handle Making Tax Digital and Self Assessment for landlords?

Only the record keeping. You can record rental income and costs as ordinary income and expense entries and estimate the tax, but Taxmo has no property-specific screens, such as a per-property ledger or the property pages of the Self Assessment return. It cannot submit Making Tax Digital for Income Tax updates or a Self Assessment return today. Landlords should verify on GOV.UK whether and when MTD for Income Tax applies to them.

Does Taxmo work for a UK limited company?

For bookkeeping and VAT, yes. You set the business up as a limited company with its Companies House number, then use invoicing, expenses, bank transactions, the ledger, trial balance and profit and loss, and file VAT returns if you are registered. Taxmo can export your records for your accountant. It does not file Corporation Tax returns or accounts, and it does not run payroll, as the next answers explain.

Does Taxmo file Corporation Tax returns or annual accounts for a limited company?

No. Taxmo does not prepare or file Corporation Tax returns, statutory annual accounts or Companies House filings. Your accountant or another service needs to do those, and the export from Taxmo gives them the records.

I am a contractor choosing between a limited company and sole trader: does Taxmo work for both?

Yes. You choose sole trader or limited company when you set up your business profile, and invoicing and expenses work for both. Taxmo does not tell you which structure is better, because that depends on your circumstances, so talk to an accountant before you decide.

Does Taxmo handle IR35 status or the off-payroll paperwork?

No. Taxmo does not assess IR35 status, produce status determination statements or run umbrella arrangements. It keeps the invoices and expenses of your contract work. For status questions use HMRC's guidance on GOV.UK or take professional advice.

Does Taxmo do payroll?

No. Taxmo does not run payroll, PAYE or Real Time Information submissions. If you pay employees you will need separate payroll software alongside Taxmo.

Can Taxmo handle CIS for a contractor who pays subcontractors?

It keeps the records and works out the figures, but it does not file with HMRC. You can keep a list of subcontractors, record each payment with the deduction taken, see deductions for the year so far, and generate the figures for the monthly return by CIS tax month, including nil returns. Taxmo does not check a subcontractor's status with HMRC or send the return: you do both with HMRC, then mark the return as submitted in Taxmo. CIS tracking needs a paid plan, and the dates are on the UK tax deadlines page.

Can Taxmo track CIS deductions taken from me as a subcontractor and help me reclaim them?

No. CIS in Taxmo is built for the contractor who pays subcontractors. There is no view for deductions taken from you and no reclaim calculation, so verify on GOV.UK how deductions count against your tax bill.