We are committed to delivering the highest level of professional competence and expertise at a cost effective price. Whether you are a company, partnership, sole trader or a sub-
Please feel free to visit or contact us during the following times:
Monday-
*Please contact us if you require an out of hours appointment
9AM to 5PM
© 2024 Branagans Accountancy Services Ltd | Company Number: 5965462 | VAT Number: 917 8490 87
BRANAGANS
Accountancy Services Ltd
01709 327 215 | info@branagans.co.uk
What is it?
Making Tax Digital for Income Tax Self Assessment (often known as MTD ITSA) is a new way of reporting earnings to HMRC. It's part of the government's flagship policy to modernise the UK's tax regime.
Who will MTD ITSA affect?
From April 2024 individuals with business and/or rental income over £10,000 per annum will need to make quarterly reports under MTD ITSA. This will affect most self-
What will change?
As part of the scheme, all sole trader businesses and self employed taxpayers who come under MTD ITSA will need to keep all business records digitally, using accounting software and file the submissions via MTD ITSA compatible software.
These submissions will be:
Quarterly updates which will need to be submitted to HMRC. These quarterly returns will consist of total sales and expenses that arise every three months. They will be required to be submitted on or before 5 August, 5 November, 5 February and 5 May every year.
End of period statements (EOPS) will have to be filed annually, on or before 31 January following the end of the relevant tax year and can only be made once all quarterly updates have been submitted. An EOPS allows you to finalise your business income for the period. It's how final adjustments to your accounts are made and any reliefs are claimed.
It's important to note that you need to submit the quarterly updates and EOPS for each source of business income. For example, if you are a sole trader earning £5,000 per year from your business and an additional £9,000 as rental property income, you will need to send quarterly updates and an EOPS for both sources of income.
Final declaration can be submitted once you have told HMRC about all of your sources of taxable income for the year.
What else do you need to know about MTD?
Since 6 April 2022, every VAT-
How can Branagans Accountancy Services Ltd help you prepare for and comply with Making Tax Digital?
Here at Branagans, we work with a wide range of businesses to help them with their accounting needs and have a team of dedicated MTD specialists who are able to advise you of the steps required to be compliant. Please contact us for a FREE consultation on your MTD ITSA requirements.