MTD ITSA - new guidance for businesses
Latest guidance. For some time HMRC has been criticised for not providing enough information about Making Tax Digital for Income Tax Self-Assessment (MTD ITSA). In response it has raised its game by substantially updating its guidance. Four improved guidance notices were published at the end of August 2022 (see The next step ):
- check if you can sign up for Making Tax Digital for Income Tax
- check when to sign up for Making Tax Digital for Income Tax
- sign up as an individual for Making Tax Digital for Income Tax
- using Making Tax Digital for Income Tax.
Preparatory steps. HMRC explains that although compatible record keeping and reporting under MTD ITSA aren’t required until April 2024, you must complete various tasks well before that date. The guidance also clarifies who’ll be required to sign up for MTD ITSA and authorising your accountant to submit MTD ITSA reports on your behalf. Tip. Don’t skip this guidance if you’re a sole trader (self-employed) or a landlord. Make time to read it. MTD ITSA is coming and it will mean huge changes for many businesses.
For links to HMRC’s updated guidance, visit https://www.tips-and-advice.co.uk , year 22 issue 22.