Making Tax Digital for Income Tax: What did the Autumn Statement change?
Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is an impending update. It’ll change the way businesses record and report their financial information to HMRC (HM Revenue and Customs). For more information check out our knowledge hub here.
In the Autumn Statement, the Government announced design changes to the reporting obligations under MTD for ITSA. The points of note are:
End of Period Statement removed
The requirement to submit an End of Period Statement to confirm the information is correct and complete has been removed. This will simplify the process and lighten the administration burden for businesses.
Cumulative Quarterly Updates
The quarterly updates, which are summaries of income and expenditure, will now be cumulative. Updates will include the previous quarters’ information, building a full picture of the year-to-date information. Businesses can therefore correct and amend submission throughout the year rather than having to resubmit previous quarterly updates.
Landlords with jointly owned property given simplification
Landlords with jointly owned property will now be able to:
- choose not to submit quarterly updates of their expenses which relate to jointly owned properties. These records will still need to be submitted before they finalise their tax position for the year.
- keep less detailed digital records in relation to these properties to simplify the transfer of records between joint owners.
Access for multiple agents
HMRC is creating a way for taxpayers to have multiple tax agents represent them. A business may have a different agent for the quarterly updates and the end of year accounts.
Exemptions
Some taxpayers will also be exempt from Making Tax Digital having recognised that there may be barriers and/or limited benefits. Those exempt include those without a National Insurance number, and foster carers.
The Government's update simplifies and improves the system for small businesses.
How can TaxAssist Accountants help?
If you still require assistance with Making Tax Digital, speak to our qualified and friendly team today. Call TaxAssist Accountants on 01953 630 004 or drop us a line using our online enquiry form.
Last updated: 27th November 2023