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Making Tax Digital (MTD)

MTD ITSA / Making Tax Digital For Income Tax

WHO WILL IT IMPACT & WHEN?

From April 2024 individuals with business and rental income over £10,000 per annum will need to make quarterly reports under Making Tax Digital for income tax (now dubbed MTD ITSA). This will include many sole traders and landlords.

General partnerships with income greater the £10,000 will be required to comply in the same way from April 2025.

There are limited exemptions, which must be applied for to HMRC. Click here for more information.

THE CHANGES:

  1. Business records (income & expenses) to be kept digitally. These can be kept using an accounting software such as Xero or Sage.
  1. Quarterly updates to HMRC for each type of income (business or property). The deadlines for submitting quarterly updates will be the same for everyone, 5th August, 5th November, 5th February and 5th May. Submissions will be able to be made via accounting software.
  1. An annual end of period statement (EOPS) along with a final declaration that replaces the current Self-Assessment tax return. You’ll have to submit the EOPS and final declaration and pay the tax you owe by 31st January of the following tax year.

SUPPORT

If you need assistance with Making Tax Digital for Income Tax (MTD ITSA), please get in touch with the team at FFT. Click here to get in touch

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