HMRC updated MTD for ITSA (Income Tax Self-Assessment) Guidance on 26 August 2022.
Yet, a lot of work is still in progress. The HMRC has to leave software firms and vendors unanswered. HMRC has amended four key points for MTD for Income tax.
The latest Guidance Update on MTD for Income Tax is as follows:
- Check if you can signup
- Check when you need to sign up
- Sign up as an individual for Making Tax Digital for Income Tax
- Using Making Tax Digital for Income Tax
Check if you can sign up for Making Tax Digital for Income Tax
HMRC has defined who can sign up for MTD ITSA
- Only UK-self employment income can contribute to MTD ITSA.
- You can’t signup if you are a trustee, a personal representative of someone who has died, or Lloyd&rsquo’s member. However, underwriting businesses and non-resident companies can sign up voluntarily if qualifying income is above £10,000.
Using Making Tax Digital for Income Tax
The taxpayer has to repeat the process every 18 months; it will be similar to what is currently happening for MTD for VAT. However, the calendar month is still missing. Thus, the HMRC guidance simply says, ” We will tell you how you can do this when available.”
Sign up as an individual for Making Tax Digital for Income Tax
It has provided guidance for individuals to sign up rather than what taxpaying agents would do on their behalf.
Check when to sign up for Making Tax Digital for Income Tax
MTD ITSA requirements must be met from 6 April 2024. Taxpayers who are eligible to sign up to MTD ITSA must first submit their self-assessment tax return for 2022/23 by 31 January 2024.
Speak to our team of accountants if you have any queries about how MTD ITSA will affect you.
