Making Tax Digital prep, for straightforward books.
If your books are straightforward, just profits, losses and the essentials HMRC asks for, this will work out the figures for your quarterly update from what you type in. It is not built yet. When it opens, you send each update to HMRC yourself, through software that works with Making Tax Digital, or your accountant does.
Where this has got to
The preparation is the part that needs nobody’s permission but yours. It will work out your figures from what you type in and check them against the rules HMRC actually tests, so you see every figure before you send anything. That is what this list is for, and it is not built yet.
Sending it to HMRC from inside Lekhio is a different thing, and we will not blur the two. The code that talks to HMRC has been run end to end against HMRC’s own test systems, with the fraud prevention headers HMRC requires on every call, and HMRC has granted Lekhio production access. The part of the app that would send your update is not built yet, so Lekhio cannot send anything today. We will not put a date on it, and getting your tax right matters more than being first to say we can send it. Until it can, you send the update through other software that works with Making Tax Digital, or your accountant does, and Lekhio does the work that gets you there.
How it will work
Answer the basics
You will type in your profits, your losses, and the few essentials HMRC needs from a straightforward return. Nothing more.
Lekhio works out the figures
A fully deterministic engine will work out your figures and check them against the rules HMRC actually tests. No AI in this path, which is why it will cost nothing to run.
You check it and you send it
You will see every figure before anything goes anywhere. You send it to HMRC yourself, through software that works with Making Tax Digital, or your accountant does. HMRC holds your taxpayer relationship throughout, always.
Why it will cost nothing
Every other part of Lekhio uses AI to read a photo of a receipt or answer a question about your figures. This basic preparation path will not. It will be a fully deterministic engine working from numbers you type in, so it will cost us nothing to run whether one person uses it or a million do. That is the whole reason it can be free for good rather than a promotion that ends.
What it covers, honestly
Straightforward sole trader profit and loss, nothing more, at least at first. Property income, a PAYE job alongside your trade, VAT, and the rest still need the fuller picture, which is what the full Lekhio service is for. We would rather tell you the edge of it now than have you find out later.
Questions people ask
Is it actually free?
It will be, for the basic path, and it is not built yet. When it opens, it will work out the figures for a straightforward quarterly update: profits, losses, and the essentials HMRC asks for. No AI is involved, so it will cost us nothing to run and there is no reason to charge for it. You will check every figure, and you send it through software that works with Making Tax Digital, or your accountant does.
So do I still send it to HMRC myself?
Yes. When the basic path opens, Lekhio will work out the figures for the update, and you send it through other software that works with Making Tax Digital, or your accountant does. HMRC has granted Lekhio production access, but the part of Lekhio that sends is not built yet. We will not put a date on it, and this page will say so the day it changes.
Do I have to be a paying Lekhio customer?
No. The basic path will stand on its own. If your situation is simple, it may be all you need.
What if my situation is not simple, property income, a PAYE job alongside my trade, VAT?
The basic path will cover straightforward sole trader profit and loss only. Anything with more moving parts is what the full Lekhio service, bookkeeping and tax prep all year, is for.
Does Lekhio file my tax for me?
Lekhio prepares your figures. You always review and approve before anything is sent, and you stay responsible for your tax. HMRC has granted Lekhio production access for Making Tax Digital for Income Tax, but the part of Lekhio that sends is not built yet, so Lekhio cannot send anything to HMRC today. Until it can, you send your quarterly update through other software that works with Making Tax Digital, or your accountant does, and Lekhio gives you the figures as a CSV file to import.
When can I actually use it?
It is not live yet. This page is here so you can join the list and hear the moment it opens, rather than us making a promise before it is built.
General information, not tax advice for your exact situation. Lekhio is an independent UK company, not HMRC, and not endorsed by HMRC.
We PREPARE. You APPROVE. HMRC always holds your taxpayer relationship. That does not change here or anywhere else on Lekhio.