MTD ITSA & Making Quickbooks Work For You

Mar 10, 2024 | Articles, Making Tax Digital, Newletter Articles, Taxation, The Material | 0 comments

Article original published in Issue 7 – JT AccountS Newsletter

MTD for Income Tax Self-Assessment (MTD ITSA) is set to roll out from April 2026, and will cover all unincorporated business and landlords for Self-Assessment with annual business and/or rental income over £50,000. Businesses with an income between £30,000-£50,000 have until April 2027.

MTD ITSA is a new way of reporting earnings to HMRC and businesses and landlords will be required to use MTD-compatible software to keep digital records and send income tax updates quarterly instead of filing an annual Self-Assessment tax return. In response they will receive an estimated tax calculation based on the information provided to help them budget for their tax. At the end of the year, they can add any non-business information and finalise their tax affairs using MTD-compatible software.

Most businesses will have 2 years to prepare and test the service voluntarily prior to its introduction which is why we have included this in our newsletter now. If you don’t already do so, we strongly encourage you to begin keeping your business records digitally by signing up with us to QuickBooks, which is fully MTD compatible, as it will make the whole process easier for you and for us. And to help you with this, we would like to offer you a QuickBooks discount of £10pm for the duration of your time with us.

Using QuickBooks will enable you to:

– snap photos of your receipts and record all of your small business expenses

– create, send and track invoices and see what’s owed at a glance

– keep track of your cashflow, bank balances, profit and loss and tax deadlines

– reconcile unexplained bank transactions while they’re on the move

Contact us for a conversation about how this might affect you personally.

ALL NEWSLETTER TOPICS IN ISSUE 7:

Apron: What could be simpler than that?

Business Financing via Business Loans

MTD ITSA & Making Quickbooks Work For You

Personal Tax Accounts

Estate Planning for Business Owners

Click above to read these article through the JT AccountS website or use the button to download a printable pdf version.

Related Newletters and Articles:

Practice Number: 21331

Jacqueline Tetley is licensed and regulated by AAT under licence number 5096.

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