The Government has recently announced phased implementation of a mandatory initiative called Making Tax Digital for ITSA – also known as MTD for ITSA, it will now be effective from April 2026. Making Tax Digital (MTD) is an initiative from HMRC.
This important change is to ensure our UK tax system keeps up with the everchanging world and embraces digitalization. This will ensure it remains effective and efficient.
CUT THROUGH THE JARGON WHAT DOES MTD FOR ITSA REALLY MEAN FOR YOU?
Make no mistake this is a significant step change for individuals and landlords. You need to be prepared and Just Simply Organised can help.
As it stands, MTD for VAT is mandatory for all VAT registered businesses, above the £85,000 threshold and those that have voluntarily registered for VAT. This means that these businesses must keep records and submit their VAT returns digitally, using Making Tax Digital software that is recognised by HMRC. Which is why Just Simply Organised recommend the use of our Xero software platform.
There are certain aspects to consider such as MTD is going to be mandatory for individuals and landlords with income over £50,000 from April 2026. If you have income over £30,000, MTD for ITSA will be required in April 2027. If your business is in existence immediately before 6 April 2023 then you will be required to follow the new legislation, regardless of your accounting period end, when MTD for ITSA comes into force. General partnerships will not be required to join MTD for ITSA in April 2025.
We appreciate this sounds confusing but Just Simply Organised are highly experienced and here to help demystify and steer your business onto the right path and make this an easy transition. We believe being proactive in 2024 is the best way to go…….
Please book an appointment via info@justsimplyorganised.co.uk or call us on 01892 770612 and we can help !
