MTD ITSA currently only applies to individuals: partnerships and trusts will continue to report under the existing Self Assessment system regardless of the level of their relevant income.
Taxpayers affected will need to use MTD-compatible software to send their updates to HMRC. The deadline for this quarterly summary information is one month following the quarter end with a Final Declaration at year end.
It should be noted that there are no announced plans to change the existing timetable of tax payments. Income tax will still be payable by 31 January following the end of the tax year. Any payments on account will be due by 31 January and 31 July as usual.
Find more information here about
Major changes for landlords and the self-employed
How we can help
If you are affected and currently use a desktop bookkeeping system you will need to ensure its updated in time for MTD for Income Tax or investigate how to integrate it with bridging software. Although HMRC are still compiling their list of MTD for Income Tax compatible software you should not delay as some older software simply won’t be updated and you may need to change to a newer package. If you do not currently use any form of software, you will need to consider moving to a digital bookkeeping system in time for the charges.
Moving to online accounting can offer many other time-saving and efficiency benefits. Used correctly, it can provide you and your accountant with an overall, detailed and up-to-date view of your accounts for better financial decision making.
There are many online accounting products on the market but two we would recommend are Xero and QuickBooks Online. We can provide versions of these specifically tailored to meet your needs and offer help with the initial set up and training.
The software is available by monthly subscription. Both Xero and QuickBooks Online offers subscribers constantly updated systems to guarantee that you are always using the latest version.
If you would like more details or to arrange a free software demonstration, please email Martin Southern at
m.southern@morriscrocker.co.uk or
tel 023 9248 4356.