HMRC Announces Phased Implementation Of MTD For ITSA
Introduction to be delayed ...
Posted by Roger Eddowes on 22/12/2022 @ 8:00AM
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 ...
I applaud The Government, Treasury and HMRC for working together and realising that MTD for ITSA must work for everyone!
The Goverment recognises that the economy is unstable at the moment and with high inflation and rising interest rates, they have decided to delay the implementation of MTD for ITSA.
"It is now being phased in from April 2026!"
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.
"Partnerships are not included in this roll-out though I suspect there will be announcements around this soon!"
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.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about MTD for ITSA and how it's going to affect you, it may be a great idea to call me on 01908 774320 and let's see how I can help you.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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