New Approach Needed In Regards To MTD For ITSA
The Institute of Chartered Accountants in England and Wales (ICAEW) has written to HMRC regarding how Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) could be better shaped to suit the needs of small property businesses and the self-employed.
On 19th December 2022, HMRC announced the deferral of MTD for ITSA’s start date and an informal review into the initiative.
These suggestions have been based around what can be realistically delivered after the delay, which doesn’t end until 2026.
The ICAEW has written to HMRC to outline key points that it believes should be considered before the implementation of MTD for ITSA. These include rethinking the ‘disproportionate’ administrative burden associated with quarterly updates, decoupling the requirements to maintain digital records and to submit details of income from self-employment and property directly from software; and refocusing the MTD for ITSA initiative on digital record keeping and filing from software.
The ICEAW’s recommendation applies to all taxpayers, rather than those with turnover under £30,000.
HMRC intends to make its final recommendations on MTD for ITSA to the Financial Secretary to the Treasury in June 2023.
Danielle Harvey, Director at HTB Accountants, added:
“At HTB Accountants, we stand with the ICAEW’s recommendation. MTD for ITSA should be better suited to those who use it and we’re eagerly awaiting the proposed final recommendations.”
“If any small business is currently struggling with MTD, our friendly team of trusted experts can assist in a variety of ways to ensure they’re ready.”
If you need help with your business’ self tax assessment, get in touch with us. For more information on this update, visit the ICAEW website.