A unique use case for accounting software was delivered by FreeAgent that enabled a UK small business to submit the world’s first tax filing from space.
FreeAgent, a UK-based accounting software company, has facilitated the world’s first tax submission from space.
The initiative was part of a pilot program exploring the next stage of the government’s Making Tax Digital (MTD) legislation reforming income tax filing, which will apply to all self-employed individuals and landlords with qualifying income over £50,000 a year from now and to all those with an income over £20,000 by April 2028.
“MTD for IT is the biggest change for UK tax in more than a generation, but we know that many small businesses are still apprehensive about the legislation and how it will impact them. That’s why we wanted to show how straightforward and manageable it is for small businesses and accountants to work together to submit tax updates to HMRC through FreeAgent – even from space!”
Roan Lavery, FreeAgent CEO
To achieve the fascinating goal, the accounting software provider collaborated with Sent Into Space, an aerospace firm, and Maslins Accountancy firm, based in Royal Tunbridge Wells. Jennifer Maslin, a singer, violinist, and music teacher, was the small business owner whose tax update was submitted during this mission.
The parties involved arranged a high-altitude balloon to carry a tablet computer and router to over 26,000 meters above Earth. Using a secure satellite connection, it accessed a business’s live accounting data and submitted a digital tax update from FreeAgent’s software to HMRC using a robot arm to hit the necessary command.
This fun activity was an illustration of the ease and efficiency of FreeAgent’s software for creating digital tax records in compliance with new requirements. The software provider is currently part of the ‘private beta’ testing for HMRC’s new system. The firm has also been included in the list of MTD for IT-compatible software. Therefore, its clients do not have to worry about complying with the new legislation.
Enhanced digitalisation might be a good thing, but for many local SMBs, MTD for IT is also a great deal of stress. It is the biggest change in the UK tax system in more than a generation so, as every routine disruption, it’s being treated with caution and apprehension.
The space endeavour of FreeAgent aimed to demonstrate the flexibility and accessibility of digital tax submissions under the MTD framework, emphasising that taxes can be managed anytime and anywhere.
