Implementation of Making Tax Digital (MTD) for Income tax self-assessment (ITSA) and General partnerships have been postponed due to the Covid 19.
What is MTD for ITSA and when are the new implementation dates?
MTD for ITSA stands for Income Tax for Self-Assessment which applies to individuals, partnerships or trust with the Business and property income exceeds £ 10,000 per year.
- MTD for ITSA has been delayed till 6th April 2024
- MTD for general partnerships has been delayed till 2025
How to prepare and what records need to be kept?
All accounting records need to be taken into a digital platform or at least to spread sheets to enable MTD reporting. These records should satisfy the requirements specified by the HMRC. HMRC wishes to convert year end to tax years
ITSAs must implement MTD by April 2021, and MTD for general partnerships must be implemented in 2025. Nonadherence with these requirements will cause penalties as follows.
|Number of days Past due||Penalty|
|16-30 days||2% of tax due|
|31 days and over||4% of the tax due and plus 4% per annum|
- Make your all accounting records 100% digital and real time if it is not been done yet
- Ensure your financial year end is match with tax year end
- Find the proper accountant who can provide your book keeping , accounting and taxation services on digital and real time basis.