Two years may sound like eons away when it comes to your business. However, with fundamental changes to the administration of the UK tax system coming down the pipe, business owners should take every opportunity to start getting apprised of what Making Tax Digital for Income Tax (MTD for ITSA) will mean for them and their companies.
What is Making Tax Digital for Income Tax?
Beginning April 2024, all self employed businesses and landlords with business and/or property income of at least £10,000 will be required to:
MTD will be introduced using a phased approach with:
What Can You Expect from the New MTD Procedures?
Some of the new mandates will be:
Why Should Business-Owners Keep MTD on Their Radar?
April 2024 may seem a long way off but preparation will be key. This is particularly the case as penalties will be applied for any late submissions (or non-submission) of the newly required quarterly updates.
Watch This Space!
Further guidance will apparently be published later in the year explaining how HMRC intends MTD for ITSA to work in practice, including how accounting and tax adjustments should be made.
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