MTD ITSA pilot to become more accessible in July
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) will begin to become compulsory from 2024. However, HMRC is encouraging taxpayers to sign up early via the pilot scheme. Now it has announced that from July 2022, the pilot will be expanded, allowing more individuals to join. Who will be eligible?
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Beating the landlord tax hikes
Once again, landlords will be hit by tax increases announced in the Budget, even if they are operating through a company. What are the changes, and can anything be done to mitigate them?
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Electronic VAT return
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Government announces significant climbdown on IHT reforms
The introduction of a £1 million cap on 100% business and agricultural property relief from April 2026 has been criticised particularly heavily by the farming industry. The government has announced a significant watering down of the measure. What’s happening?
MTD ITSA will become compulsory for taxpayers with self-employment or property income from April 2024. Certain categories of taxpayer have been able to sign up early to have as much time as possible to familiarise themselves with the requirements, such as keeping digital records and sending quarterly updates. Taxpayers using the pilot still have to submit a tax return at the moment. However, until now the eligibility criteria have been criticised for being very narrow. Coupled with this, the number of software providers that are currently compliant is relatively small. As a result, the uptake in joining the pilot has been very small. HMRC has now announced that taxpayers with the following reportable items will be able to join from July 2022:
- self-employment(s)
- UK property
- Gift Aid
- Pay As You Earn income, including pensions
- UK interest
- UK dividends.
It appears that those with income from other sources, partnerships and with certain charges collected via self-assessment, e.g. the High Income Child Benefit charge, will continue to be excluded for the time being. Anyone wishing to obtain further information should contact their software provider, or HMRC by email at mailboxmakingtaxdigital@hmrc.gov.uk.
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