In December 2022, the timetable for the introduction of Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) was changed.
The Government declared that instead of launching in 2024, MTD for ITSA would be rolled out in compulsory phases, beginning 6 April 2026.
What is MTD for ITSA?
MTD for ITSA constitutes a part of the wider Making Tax Digital programme spearheaded by HM Revenue & Customs (HMRC).
The initiative obliges individuals, encompassing self-employed individuals and landlords, to keep digital accounts of their earnings and expenditures and utilise compatible software to relay their tax details to HMRC.
This will replace the conventional practice of submitting Self-Assessment tax returns either on paper or via the HMRC website.
What are the phases?
How to get started with MTD for ITSA
As MTD for ITSA becomes an integral part of the UK’s tax system, it is crucial to understand how to transition to this new digital approach.
Here are some fundamental steps to help you adapt to the changes:
Transitioning to MTD for ITSA may seem daunting, but with proper planning and adherence to the guidelines, the switch can be smooth and advantageous.
Embracing this digital transformation not only ensures compliance with the law but also offers an opportunity to enhance the efficiency and accuracy of your financial management.
For additional insights on MTD for ITSA, please get in touch today.
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