MTD for ITSA delayed

Annabel Barnes • 4 January 2023

MTD for ITSA delayed

Just before Christmas HMRC announced that they were delaying the implementation of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). MTD for ITSA for those earning more than £10,000 was due to come into play from April 2024. After much deliberation with financial bodies, software providers and research carried out via the pilot scheme, HMRC decided that it was in everyone’s best interest to delay the roll out until April 2026.

Following the delay,HMRC has also announced that there will be further changes in 2026;

Originally those earning over £10,000 per year, including landlords would need to comply, this has now been raised to £50,000.
Anyone who earns £30,000 or month will be required to comply with MTD in April 2027
There is currently no date in place for those earning less than £30,000 to have to comply. This will be reviewed once people start to comply from April 2026.
There is no date set for anyone who is in a Partnership or Limited Liability Partnership (LLP), although HMRC has confirmed that this is definitely in the pipeline.

This may now leave people thinking that they should just carry on as they are, keeping their accounts on a spreadsheet and hoarding paperwork. However, this method of bookkeeping is not as accurate as that of cloud accounting. At Bluebells Bookkeeping we use Xero and QuickBooks in order to ensure that your accounts are accurate, giving you an overall picture of your finances. This also gives you access to your figures in real time, allowing you to make important business decisions. Xero is MTD compliant meaning that if you leave your bookkeeping to us, you’ll already be prepared when MTD comes into place.

If you’d like to take your business to the next level and get ahead of the game, then book a discovery call today.

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