MTD for ITSA is just 16 months away from its live day.
With MTD for ITSA only 16 months away, many people still feel unprepared for this change. We want to help you to get ready for the changes and we’ll help you prepare your clients too!
Accountants are feeling the pressure to support and communicate to their clients just what they really need to do in order to remain compliant. With so much going on in the world of tax, time is of the essence and is not really a luxury that many Accountants have right now. With this all in mind, we want to help!
In the next coming months, we will create a series of documents to help and support you in this way! But for now here are a couple of points which we hope will help you with the basics.
Here is one to get us started https://www.capium.com/download/
What is MTD for ITSA?
HMRC states that MTD for Income Tax Self Assessment ( ITSA ) will apply to individuals from April 2024, if their total gross income from self-employment and property exceeds £10,000 in a tax year. Most businesses will have 2 years to prepare and test the service voluntarily prior to its introduction.
What do you need to know?
This change is going to happen be it within the next 2 years or later. It is important to prepare and communicate to businesses and individuals.
Making Tax Digital for Income Tax
Businesses and landlords who join MTD for Income Tax will need to send a quarterly summary of their business income and expenses to HMRC using MTD-compatible software. In response they will receive an estimated tax calculation based on the information provided to help them budget for their tax. At the end of the year, they can add any non-business information and finalise their tax affairs using MTD-compatible software. This replaces the need for a Self Assessment tax return.
HMRC states that the deadlines for finalising tax affairs and making payments are not changing. Businesses and landlords will be able to use their software to send all of the information that they are required to under Self Assessment, and not just their business or rental income. This includes employment income, bank and building society interest, dividends, pension contributions, student loan repayment, etc. Software developers will need to continue to build this additional functionality into their products, resulting in a richer experience for customers as MTD continues to develop.
You can join the HMRC MTD pilot for Income Tax now if you meet the current eligibility criteria. We will widen eligibility over time and the pilot will support the vast majority of sole traders and landlords by April 2022.
HMRC will block a customer from joining MTD for Income Tax if their last Self Assessment tax return suggests that they do not meet the current eligibility criteria.
Capium are proud to be on the list for MTD ITSA development
What digital records mean for you as an Accountant and client
- Reduces human error and gives the holder a better view of their financial situation
- Keeping records online means that as an Accountants, businesses share data with you faster, reducing possible bottlenecks
- Records can be kept in real time, so as an accountant – you can review your clients activity more frequently
How we can help?
If you would like to talk to us about your Practices needs or requirements for MTD ITSA, contact us today on 02033225578 or you could email us info@Capium.com