MTD for Income Tax Self Assessment Delayed
The introduction of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) has been delayed to April 2024, giving businesses and landlords breathing room to prepare for the changes needed to ensure that they are compliant.
The changes now mean that businesses and landlords with income over £10,000 per annum in the tax year beginning April 2024 will have to ensure they have suitable software in place to be able to keep digital records and submit their income tax self-assessment. General partnerships will have until the tax year beginning April 2025, and the date other type of partnerships will be required to join is yet to be confirmed.
MTD for ITSA will mean businesses and landlords will be required to send a quarterly summary of their business income and expenses to HMRC using MTD compliant software, and in return they will receive an estimated tax calculation with the aim of helping users budget for their tax requirements. At the end of the year, instead of submitting a self-assessment tax return, users will instead add any non-business information and finalise their tax affairs using their MTD software.
At a time of continued pressure on business owners, the change of date will be welcomed by many who will benefit from the additional time to get their MTD software set up. As always, we recommend that you speak to your current Wenn Townsend contact, or contact Helen Smith our Private Client Tax manager, with any queries you have. For clients who will be impacted by the MTD for ITSA changes, we will continue to be in touch to ensure you are ready and have a number of solutions that we are happy to recommend.
More in Finance
Unipart announces financial results for the year ended 31 December 2023
Unipart delivers strong growth and revenues exceed £1bn
Charles Stanley ...
Established in 1792, Charles Stanley is one of the UK’s leading wealth management firms, with a rich heritage of delivering high quality client service. Although we are more than 200 years old, we are focused on investing in our future, embracing technology and innovation, and adapting to changes in society to help our clients prosper. Operating from more than 20 branches across the UK we provide bespoke investment portfolios and tailored financial advice at every stage of your financial journey.
Your FREE guide to the Spring Budget 2023
Chancellor, Jeremy Hunt’s Budget 2023 revolved around the theme of back-to-work through the extension of free childcare, and the lifting of pension caps.
From this author
Energy Bill Relief Scheme launched
The Business Secretary Jacob Rees-Mogg has announced the launch of the new Energy Bill Relief Scheme to help cut energy bills in the non-domestic sector. The new scheme will cover all non-domestic energy customers, including UK businesses, the voluntary sector, for example charities and the public sector such as schools and hospitals.
How the VAT Reverse Charge works
The VAT domestic reverse charge accounting mechanism was put in place to help prevent criminal attacks on the UK VAT system by means of sophisticated fraud.
Small Business rate relief
Business rates are charged on most non-domestic premises, including most commercial properties such as shops, offices, pubs, warehouses and factories. Some properties are eligible for discounts from the local council on their business rates. This is called business rates relief. There are a number of reliefs available including small business rate relief, rural rate relief and charitable rate relief.