MTD For ITSA
Have you heard about MTD for ITSA?
Not sure what MTD for ITSA actually is? So many letters and confusing acronyms.
Simply put, MTD (Making Tax Digital) for ITSA (Income Tax Self Assessment) enables HMRC to digitise the tax system. They aim to make tax returns much easier and more efficient for one and all.
Progress has been slow, but steady. A heads up for you here. As a business owner, you must be aware of this important upcoming legislation. From April 2022, all VAT-registered businesses have already make the switch, using compliant software. All done and dusted. The next stage is to focus on Income Tax Self Assessment.
As of April 2024, any landlords or self-employed businesses that have an income of more than £10K per year must report earnings and pay income tax via recognised software that has been government approved.
In a nutshell, HM Gov hopes that this will lead to fewer mistakes. Equally, that business owners will be able to keep on top of their finances more efficiently. It all makes sense. And, it’s quite simple, really. Using government-approved software, you simply need to record your finances and submit them to HMRC every three months.
How does MTD for ITSA benefit YOU?
Yes, change can be scary. But often with change come loads of fantastic benefits, which we think will be the case here. Now, you’ll be able to forget about messy piles of paperwork, and having to keep track of everything.
You’ll have ONE easy online platform for all your essential financial information. And, with a clearer understanding of what’s going on in your business, you’ll see the “bigger picture” and be able to strategise more. Not to mention enjoying more time to focus on the things that matter.
Whilst this may seem daunting, you have plenty of time to get online
Whether you want to get it out of the way or you like the sound of having it all online, there are a few things you’ll need to do in order to set up MTD for ITSA.
The first step is to think about the software. The government recommend Quickbooks, Sage or Xero. From there, you’ll need to do the following:
- Create 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
At Angel Bookkeeping, modesty aside, our knowledge of MTD for ITSA is second to none. So, whilst we appreciate that these new obligations WILL make your working life easier (much easier, in fact), we’re aware that there’s still a lot to take on.
The first stages of doing something new are often the hardest. So, if you’d like to leapfrog getting online and setting everything up, Angel Bookkeeping is here to help. There are no doubt niggly jobs that you simply don’t want to do, and this is most like one of them. So, don’t do it. Get in touch with us. .
Working alongside your operation, just let us know how much – or how little – you need us to get involved. From advice regarding set-up, through to a complete outsourced service, our team is flexible and adaptable to your needs.
To speak to our team today, contact us on 07867 129210 for a friendly chat.