HMRC updates MTD ITSA guidance
HMRC has clarified which taxpayers can sign up for Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) voluntarily in its updated guidance. Who can join early and is it worthwhile?
From 6 April 2024, individuals with self-employment or rental income over £10,000 will be required to register for MTD ITSA. This means that all records will need to be kept digitally, quarterly updates must be submitted to HMRC, and a final declaration must be made at the end of the year. Individuals within MTD ITSA will no longer be required to submit annual self-assessment returns. The due date for income tax payments remains 31 January following the end of the tax year. To help HMRC test and develop the service and to get used to quarterly reporting, you can sign up to use MTD voluntarily now. HMRC has clarified that you can start using the service if you’re:
- a UK resident;
- registered for self-assessment with no outstanding tax returns or tax payments; and
- a sole trader with income from one business, or a landlord who rents out UK property.
You cannot sign up yet if you need to report:
- income from any other sources; or
- an income tax charge, e.g. the High Income Child Benefit Charge or annual allowance pension tax charges.
If you do join, you must still submit the tax return for the previous tax year. For further information, see the guidance here.
Related Topics
-
Special payroll deadline for Christmas
If you pay staff early in December because of Christmas it’s important that you enter the information on your payroll submission correctly. What do you need to know to get this right?
-
Paying VAT when cash is tight
Your business has suffered a major cash-flow problem caused by an unexpected bad debt. Your VAT return is due for payment and you do not have enough funds to pay on time. What can you do?
-
How to improve your state pension
If you ask the Department for Work and Pensions (DWP) it will tell you that once you’ve paid 35 full years of NI contributions you can’t increase your state pension by paying more. That’s wrong. When can paying NI beyond the 35-year limit benefit you?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.