MTD HMRC – ITSA
HMRC have announced some important changes recently in regard to Making Tax Digital with regards to Income Tax Self Assessment
MTD Logo, HMRC
Important Update – HMRC – MTD – ITSA
From this I thought I would update you on the changes that are going to be effecting you particularly as a submitter of Self-Assessment Online yourself and via and agent such as myself.
What do you need to know?
Firstly what are the important dates that you need to know.
April 2021 – HMRC are inviting businesses and landlord to take part in the ITSA (Income Tax Self Assessment) scheme, any feedback will improve the service when it goes live.
April 2023 – HMRC states that all Self-Employed Businesses and Landlords with Income above £10,000 per year must sign up to do their SATR via MTD.
Why are HMRC changing?
The reasons why HMRC are doing this are pretty simple, with life becoming more digitalised, archaic systems need to move with the times.
Also with the introduction of MTD for Income Tax, its makes it a more effective, efficient and time saving process for businesses, and also means the reduction of errors within the Tax Returns themselves.
What does this mean for you?
MTD requires taxpayers to maintain records digitally, and file quarterly updates through MTD Compatible software.
You may also want to look into a Bookkeeper to help you set this up.
The benefits to you an a Self-Employed Business or Landlord is that are able to gain better insight when it comes to financial planning, with a clearer insight into tax payments.
For more information have a look in the HMRC Website.