itsa Archives - WRLO Accountants

MTD for Income Tax pilot now live

WRLO Accountants — Fri, 03 May 2024 08:38:01 +0000

HMRC’s pilot scheme for Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is now live. Accountants, agents and individuals are able to sign up to the pilot and test the programme out. The pilot aims to assess the MTD for ITSA reporting environment, with an initial focus on those who are self-employed and landlords with annual income exceeding £50,000. Signing up to MTD for ITSA will become mandatory for individuals with income in excess of this threshold from 6 April 2026. Those signing up to the pilot will be required to keep digital records and submit quarterly updates on their income and expenditure to HMRC via MTD-compatible software so that HMRC may test and develop the system. However, after HMRC revised its list of software products that support MTD for ITSA only five are available for the private beta testing of MTD for ITSA. These are: 1 2 3 Sheets Ltd Intuit QuickBooks Online Sage Accounting SE reports self assessment direct. Chosen software must be able to create and store digital records of business income and expenses, send quarterly updates, receive information from HMRC and make your final declaration by 31 January as part of the submission of […]

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HMRC publishes guidance on MTD for ITSA for sole traders and landlords

WRLO Accountants — Fri, 01 Mar 2024 17:52:38 +0000

HMRC has published guidance on the Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) requirements for sole traders and landlords. MTD for ITSA will require businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter via compatible software. In the guidance, HMRC stated that MTD for ITSA will be introduced in two phases: from April 2026 for those with qualifying income over £50,000 from April 2027 for those with qualifying income over £30,000. HMRC said that MTD will exploit ‘the opportunities offered by digitalisation to make it easier for everyone to get tax right’. It said that digitalising government tax services helps to reduce the risk of unintentional customer errors; saves taxpayers time when they submit their tax returns; supports wider productivity and less time managing paperwork; and enables HMRC to better tailor its services to its customers. In its latest guidance, HMRC estimates an average transitional cost of £115 for businesses mandated to use MTD for ITSA. Businesses within the £30,000 to £50,000 threshold are estimated to incur an average cost of £350 while those above £50,000 may incur an average cost of £285. Internet link: GOV.UK

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January 2023

WRLO Accountants — Mon, 09 Jan 2023 14:41:37 +0000

In this month’s Enews we consider the delays to the next stages of Making Tax Digital and the impact of the pandemic on tax compliance. We also update you on the government’s mortgage guarantee scheme and the latest developments in the UK economy. With news on freeports and financial sector reforms, there is a lot to update you on. MTD for ITSA delayed for two more years Tax non-compliance during pandemic cost UK £9 billion Government extends mortgage guarantee scheme Chancellor announces Spring Budget date Bank of England raises base rate to 3.5% Brexit deal not delivering for businesses Plymouth and South Devon freeport gets go ahead Chancellor launches financial sector reforms MTD for ITSA delayed for two more years The Treasury has announced that Making Tax Digital for income tax self assessment (MTD for ITSA) will be delayed for two more years until April 2026. MTD for ITSA was due to take effect from April 2024 and would have required all self-employed individuals and landlords with income over £10,000 to report earnings quarterly through the MTD for ITSA system. However, in a Written Statement, Victoria Atkins, Financial Secretary to the Treasury, confirmed that the mandation of MTD for ITSA will […]

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