Making Tax Digital for Income Tax Self Assessment (MTD for ITSA)
5 things business owners and landlords will have to do.
What's changing ?
HMRC’s new Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) rules will come into effect in April 2023. From then on, sole traders, partnerships and landlords with income above £10,000 will have to change the way they record and report income to HMRC.
Who does it affect ?
Sole traders, partnerships and landlords
Instead of submitting a Self Assessment tax return on
ce a year, affected businesses and landlords will need to use MTD-compatible accounting software to send quarterly updates about their earnings, followed by a final update at the end of the year.
The 5 steps
If the changes affect you, here are five things you’ll need to do to comply with the new rules:
1. Sign up for the initiative via the HMRC website
2. Keep digital business records
3. Get MTD-compatible accounting software
4. Send business income and expenses updates
5. Finalise your business income
FreeAgent. 2021. 5 MTD for ITSA tasks for business owners and landlords. [online] Available at: <https://www.freeagent.com/blog/mtd-for-itsa-tasks-for-businesses-and-landlords/> [Accessed 27 August 2021].