What is Making Tax Digital for ITSA?
Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is a new way of reporting earnings to HMRC. You’ll need to use compatible software to keep digital records and send Income Tax updates to HMRC, instead of filing a Self-Assessment tax return.
As it stands, this becomes mandatory from April 2024 for sole traders and landlords with turnover above £10,000 per year.
From 6 April 2024, you’ll need to submit quarterly updates to HMRC, as well as an End of Period Statement (EOPS) at the end of your fourth quarter, and a Final Declaration that includes all other taxable income by 31 January every year.
VAT-registered sole traders and landlords will already be familiar with MTD rules. From April 2019, MTD rules became mandatory for all VAT-registered businesses earning above £85,000. And from April 2022, all VAT registered businesses now need to keep digital records and submit VAT returns with MTD software.
For a full overview of Making Tax Digital for Income Tax please read our MTD for Income Tax Factsheet.
We are working on an implementation plan for those LKA clients who this affects and will be in touch shortly to discuss in more detail. If you have any queries or concerns please call us on 020 3915 8585 or email firstname.lastname@example.org.