On 20 July 2021, the UK government announced the delay of the implementation of MTD for ITSA (Income Tax Self Assessment) until April 2025. This delay recognises the ongoing challenges businesses and individuals face due to COVID-19, allowing them additional time to prepare.
What is MTD for ITSA?
MTD for ITSA is part of the wider MTD initiative, which requires businesses and individuals to keep digital records of their income and expenses and submit their tax returns digitally. Its aim is to improve compliance and reduce errors in the tax system.
Self-employed individuals and landlords with income over £10,000 will be required to keep digital records of their income and expenses and submit quarterly updates to HMRC through the MTD for ITSA system. These updates will include information on income, expenses, capital allowances, and losses. The final submission will be due by 31 January following the end of the tax year.
The benefits
It will bring significant changes to how self-employed individuals and landlords manage their tax affairs. It aims to make the tax system more efficient and effective while improving accuracy in tax reporting.
Preparing for MTD for ITSA
To prepare for the implementation of MTD for ITSA in 2025, self-employed individuals and landlords should explore digital record-keeping solutions. Familiarise with the requirements and seek professional advice and support.
Nuvo is here to help
If you are a self-employed individual or a landlord with income over £10,000, Nuvo can provide professional advice and support. Our experienced accountants can help you navigate the complexities, explore digital record-keeping solutions, and ensure that you meet all the necessary requirements.
Don’t wait until the last minute, contact us today to discuss your needs and how we can help you meet the new requirements. You can reach us by calling 01332 299990 or emailing us at hello@nuvo.co.uk.
