Delayed but not forgotten: MTD for ITSA
In spite of delays, MTD for ITSA remains a crticial component of the UK government's push to modernise the tax system.
Date published
August 10, 2023
Company
Xero
Accountants are facing significant changes due to Making Tax Digital (MTD), a crucial aspect of the UK government’s tax strategy. MTD for Income Tax Self-Assessment (ITSA) is part of this overhaul, affecting how self-employment and property income are reported.
The legislation mandates digital record-keeping and quarterly updates for self-employed individuals and landlords through MTD-compatible software. The original April 2024 implementation date was postponed due to economic challenges, pushing requirements to April 2026 for those earning over £50,000 and April 2027 for incomes between £30,000 and £50,000.
Accountants must stay updated and prioritize MTD implementation despite the delay, as revealed by a survey involving 112 UK accountants conducted by Accountancy Age in collaboration with Xero.
Through this report, you’ll explore the following:
- Practice impact: How will the legislation – and delay – affect the industry?
- Client impact: Do firms know how many clients will be impacted?
- Practice preparedness: What are accountants doing to prepare for the legislation?
- Client preparedness: How should firms help ensure clients are compliant?
- Where do we go from here? What are the industry’s next steps?
