Making Tax Digital For ITSA
What is Making Tax Digital for ITSA and what is it all about?
Making Tax Digital for Income Tax Self Assessment is a new way for landlords and self-employed businesses to report earnings and pay income tax. This threshold is for anyone who has an income of more than £10K per year.
Why are HMRC doing this?
It’s HMRC’s goal to be the most digitally advanced tax administration in the world. Making Tax Digital for Income Tax Self Assessment is a big step towards that. Not only do they want MTD ITSA to be more efficient and effective, but they also aim to help self-employed businesses and landlords get their taxes right.
The government believes that the new system will make everything far easier when it comes to paying taxes. And, keeping on top of finances.
When will this be happening?
This move will come into effect in April 2024. At that point, over 4.2 million businesses in the UK will have to use government-approved software to record their finances. Not to mention submitting them to HMRC every three months. Quite a big change, then.
To register for MTD ITSA, you’ll need access to government-approved software such as Sage, Xero or Quickbooks. To sign up, and make everything happen, you will also need to:
- A Government Gateway account, user ID and password – If you usually submit your tax return online, you’ll already have one of these
- Your business name
- Your business start date or the date you started collecting property income
- Your email address
- Your National Insurance number
- Your accounting period dates
- Your accounting type – e.g. cash or standard accounting
Yes, this seems confusion. But, there are so many benefits that you can look forward to enjoying. For example:
- Less room for error and less stress
- Gain a clearer understanding of your finances
- You can save up to one day a week in admin, leaving you more time to focus on other matters
- No more messy piles of paperwork when you can have it all online in one place
So, where do we come in?
At Angel Bookkeeping, we know how intimidating all of this can be. Equally, we recognise that getting your head around a new system can take some time. Running your own business can be overwhelming. So, you’ll always be focusing on your clients, and NOT your paperwork. We get it.
To solve this problem, our team is on hand. Whether you need help with setting everything up, or you’d like us to take over everything, we’re here for you. Our expertise is your gain.
With our years of experience and vast knowledge, we already know VAT inside and out. As you can imagine, we’re ahead of the game when it comes to Making Tax Digital for ITSA. You may not have the time, nor the inclination to submit your tax returns five times a year. So, we can support you.
Our team have a wealth of skills that can be used to help you with MTD ITSA, and our goal is to work alongside your business so you can rely on us to take care of the VAT side of things.
If you would like to learn more, we have some blogs, which we hope you find informative and interesting:
- MTD ITSA – What Is Making Tax Digital? The Must-Read Guide For Business Owners
- MTD VAT – What Is Making Tax Digital? Everything Business Owners Need To Know
We appreciate that this switch can be overwhelming, so we’re here to help you along the way.