The Requirements of MTD & MTD for ITSA. But what the heck is it?
MTD = Making Tax Digital.
Now all businesses who are registered for VAT with a turnover above £85000.00 should have been submitting their VAT returns online via their accounting software by now. However, from April 2022 all businesses regardless of turnover who are registered for VAT need to submit their VAT returns electronically. So if your VAT quarter starts in April, you have until the 7th of August to submit it
If you’re not using any accounting software, feel free to email me at email@example.com where I can run through some options for you.
MTD for ITSA = Making Tax Digital for Income Tax Self Assessment
So, from April 2024 all sole traders and landlords (with a total gross income from self-employment and property exceeding £10,000.00) will need to submit quarterly returns and then an EOPS (End of Period Statement) at year-end. Again, relevant software will be needed. The deadlines for finalising tax affairs and making payments will not be changing.
But there’s plenty of time, right?
You’re also probably thinking that you have plenty of time yet. But now is the time to be thinking about getting ready for it and thinking about the software you will be using.
April 2025 will be for general Partnerships and April 2026 for Limited companies Corporation Tax.
So, between now and April 2024, it’s a good time to make sure that you have everything in order, such as software, all receipts, invoices and reconciliations are carried out. All up to date! Oh, and your self-assessments are filed shortly after March 2024 instead of waiting until January 2025.
Because, if you don’t submit your self-assessment as soon after the 5th April 2024 as you can, you’ll be trying to submit your first quarterly submission by 5th August 2024 prior to completing your previous self-assessment for year 2023/2024.
Mind blown yet!?
You can also check out my Resources page here