MTD ITSA COMING...

The clock is ticking as we get closer to 6 April 2024 when sole traders and landlords with annual business or property income above £10,000 will start to report their income and outgoings to HM Revenue and Customs (HMRC) on a more regular basis.

Under the current rules, Self Assessment tax returns are made once a year by the filing deadline of 31 January.

Making Tax Digital (MTD) from 6 April 2024

Starting from 6 April 2024, quarterly returns will be made detailing income and expenditure and it is expected that these will be made up to 5 July, 5 October, 5 January and 5 April, with an election possible to prepare returns to align with the end of March. VAT registered businesses may wish to consider aligning their VAT period to their quarterly reporting period for MTD.

At the moment, we expect that information required on the quarterly returns will be similar to that reported under the current Self Assessment system, being turnover/gross rents less expenses using similar categories to the current tax return. Quarterly returns are due to be filed one month after quarter year end.

Adjustments for stock, depreciation, prepayments, accruals are to be made on an End of Period Statement. All other income will be brought into a Final Declaration due on 31 January, with the first date of submission under the new scheme being 31 January 2026.


From 6 April 2024 sole traders and landlords with annual business or property income above £10,000 will start to report their income and outgoings quarterly to HMRC using government approved compatible software.

Keeping Records

These changes will likely change the way you keep your records and you will need to consider using a Making Tax Digital for Income Tax compatible software. If you are already keeping records online, you can ask your provider if they plan to make the software compatible for MTD.

We have partnered with Xero to provide software and training and will be able to provide more detail in due course.

We Are Here To Help You

More detailed information is expected to be announced by HMRC in Summer 2022, and we will be sure to contact all our clients over the next 22 months with updates and information to guide you through these changes.

Be sure to give us a call for more information.

Meet the experts

You'll find our team dotted across the South West, experts in everything from tax to technology. We build long-lasting relationships with our clients, drawing on our insights and experience.

You'll find our team dotted across the South West, experts in everything from tax to technology. We build long-lasting relationships with our clients, drawing on our insights and experience.

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