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.

It’s HMRC’s goal to be the most digitally advanced tax administration in the world, and 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 the aim is to help self-employed businesses and landlords get their taxes right.

The government believes that the new system will make it far easier for self-employed businesses and landlords pay their taxes, as well as keeping on top of their finances.

This move will come into effect in April 2024, and by that point it will mean that over 4.2 million businesses in the UK will have to use government-approved software to record their finances and submit them to HMRC every three months.

In order to register for MTD ITSA, you’ll need to have access to government-approved software such as Sage, Xero or Quickbooks. To sign up, 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

Whilst this switch may seem confusing or daunting, the reality is that there are plenty of benefits that self-employed businesses and landlords can enjoy such as:

  • 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

 

VAT return service for Sussex and the UK

 

So, where do we come in?

 

At Angel Bookkeeping, we know how intimidating this can be, and we also know how time consuming it can be to get your head around a new system. Being a self-employed business to run can be overwhelming, so it’s understandable that you’ve got more pressing matters than having to worry about MTD ITSA too.

Our team can be on hand to take care of you wherever you currently stand with it. Whether you need our help setting you up, want us to take over the responsibilities or simply need some help along your journey, we are here to make a difference.

With our years of experience and vast knowledge, we already know VAT inside and out, and we’re specialists when it comes to Making Tax Digital for ITSA. We know that you may not have time to submit your tax returns five times a year, so we want to be there to 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 about MTD ITSA, we have some blogs, which we hope you find informative and interesting:

We appreciate that this switch can be overwhelming, so we’re here to help you along the way.

If you would like to learn more about how we can help, let’s get started with a phone call on 07867 129210. We can also be reached via the contact form, or you can find us on Facebook or LinkedIn.

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