HMRC has officially announced that MTD for ITSA has been postponed
by two years on 19th December 2022. According to Treasury, the delay should help smaller businesses in
the long run. The announcement observed effective rallies and concerns raised
by professional bodies and practitioners.
An element of the UK government’s initiative to digitalise the tax system, the system was earlier slated for April 2024. The latest delay sees this moved back to April 2026 to “maximise the benefits”, according to Victoria Atkins, financial secretary to the Treasury.
MTD for Income Tax Self-Assessment
will be required from April 2026, and will not be executed from April 2024 as
per fresh announcement by HMRC. The subsequent changes were also publicized
about the scope of the scheme and concerned taxpayers:
- Self-employed individual and landlords with £50,000 plus income will
be required to keep digital record from April 2026 and need to
provide quarterly updates regarding their income and expenses to HMRC via
MTD-compatible software
- People with an income between £30,000 and up to £50,000 will
require to do this from April 2027
- Before the mandated MTD for ITSA most taxpayers will be able to
sign up voluntarily.
- For general partnerships MTD for ITSA will not be extended to in
2025 but should be started at a later date, to be confirmed.
Accountants will need to aware their self-employed and landlord clients about HMRC announcement of two years delayed of MTD for ITSA. We can help you by providing accounting and bookkeeping services, annual accounts preparation, company tax returns, self assessment tax returns,VAT and payroll.
No comments:
Post a Comment