The Government recently announced that self-employed individuals and landlords will have far more time to prepare for Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) as its implementation will be delayed ...
Anyone with an income of more than £50,000 will be required to keep digital records and submit quarterly returns from that date. Those with an income between £30,000 and £50,000 will need to do it from April 2027.
However, it may be a great idea to join voluntarily beforehand, regardless of your income, so you have time to eliminate common errors in the process and ensure your record-keeping procedures and your accounting software are up to date.
For anyone with an income under £30,000, well, you can breathe a sigh of relief for now as The Government has announced a review into how MTD for ITSA can work for you, but I'd still recommend joining as soon as you can.
I applaud The Government, Treasury and HMRC for working together and realising that MTD for ITSA must work for everyone including taxpayers, agents, software developers and HMRC alike. I know that HMRC remains committed to Making Tax Digital, so a phased approach means less confusion around the maximum tax receipt which, in these strange economic times, can only be a good thing.
I think this announcement so close to the festivities will be welcomed by many, so from everyone at Essendon Accounts & Tax, have a very Merry Christmas and a Happy New Year.
See you in 2023.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.