Showing posts with label tax return accountant UK. Show all posts
Showing posts with label tax return accountant UK. Show all posts

Tuesday, 3 January 2023

MTD for Income Tax Self-Assessment Delayed Until 2026

    

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. 

Friday, 9 December 2022

File Your Self-Assessment Tax Return by 31st January To Avoid Late Filing Penalties

Self-assessment is the method employed by HMRC to gather Income Tax and National Insurance contributions from individuals who are self-employed, as well as those who receive unreported taxable income from various sources. This includes individuals holding positions such as limited company directors, shareholders, and members of limited liability partnerships (LLPs). Through the self-assessment process, taxpayers are required to report their income, gains, and other relevant financial information, enabling HMRC to calculate the appropriate amount of tax and National Insurance owed.

For the year 2022/23 the tax return filing deadline is midnight on 31st January 2024. To save yourself from tax return penalty, any National Insurance and income tax due for the year 2022/2223, must be paid by 31st January 2024. 



You also have the option to file a tax return by post in case you do not know how to file tax returns online. Filing a self-assessment tax return online is a much easier and quicker option. 


How to Register for Self-Assessment?


You must be registered for Self Assessment tax return when you file your first tax return. If you did not sent tax return online last year, you need to register (in case if you have submitted tax return through post) HMRC will send you a letter to your registered address containing 10 digit Unique Taxpayer Reference (UTR) number with in 10 working days or 21 days. 


You must then:

  • make an online account
  • use your UTR to sign up for the Self Assessment online service

HMRC will send you an activation code to your registered address with in 7 working days or 21 days if it is outside UK. Use this code with your UTR for sign in to your account and filing your tax return online. 


How To File Self Assessment Tax Return?

From below two ways you can use any one to file Self Assessment tax return (form SA100) with HMRC:

  • Complete & submit form SA100 online
  • Download & complete form SA100 by hand and submit by post

The fastest and easiest way to send a Self Assessment tax return online. You also get extra three months to file an online return and it is much easier way for making amendments.