HMRC wants to be one of the most digitally advanced tax administrations in the world. It says that Making Tax Digital (MTD) is making fundamental changes to the way the tax system works.
It also hopes that it will avoid tax errors, and this will result in more than £9 billion worth of revenue every year.
From 6th April 2024, the big change will be that all self-employed businesses and landlords with income over £10,000 will be required to keep digital records and submit via accounting software. Everyone will need to send quarterly summaries of their income and expenses, an end of period statement (EOPS) and then a final declaration at year end. This means it will now be 6 returns a year instead of 1.
We have a 2 year plan to make sure all our Self-Assessment clients are fully prepared for the changes in April 2024. Our big focus this year is getting information quarterly from you. Next year we will be focusing on maintaining digital records on Xero.
We are Xero silver partners and get access to packages that aren’t on general sale and enables us to make it a more cost effective and efficient option that using the general package on their website.
If you are thinking of fulfilling MTD ITSA yourself and would like our full guide please drop us a message and we will send it over.