Making Tax Digital update

By Andrew Richardson, Senior Manager, Digital Solutions

The Government announced on Thursday 23rd September that the date many individuals and landlords would need to comply with ‘Making Tax Digital for Income Tax Self Assessment’ (MTD ITSA) will be delayed by 12 months until April 2024.

Delay of MTD ITSA

The delay is as a result of HMRC recognising the challenges many businesses are facing as they and the country emerge from the pandemic.

MTD ITSA requires all individuals with business and property income above £10,000 per annum to keep digital financial records and submit income and expenditure figures quarterly to HMRC.  General partnerships will also have the same requirements from April 2025.

While we welcome the 12 month delay, we’re also aware that for many of our clients this is a significant change and therefore, our approach and planning for MTD ITSA won’t pause.  We want to use the extra time available to support our clients with these changes and ensure they’re comfortable with using new digital systems in advance of MTD ITSA being a requirement from April 2024.

WR Partners’ Digital Solutions team can support you with the transition onto new digital software, exploring your individual requirements and the options available, and provide the training and ongoing support you need, so that by 1 April 2024 you won’t need to be so worried about the changes MTD will bring.

In many cases there are other bigger benefits to using digital accounting software.  Being compliant with MTD and HMRC is obviously a necessary requirement, but the financial reports and insights the systems provide, while ensuring information can be entered efficiently, are a valuable benefit.

Get in Touch with WR Partners

Please contact us to discuss the MTD ITSA changes in more detail or to discuss how using a digital accounting system could be a benefit to you. Our tax advice specialists can help provide assistance on the new update and how it impacts you.