On 22 April, HMRC will initiate the pilot phase of Making Tax Digital (MTD) for income tax self-assessment. Craig Ogilvie, Director of MTD, has reached out to agents, informing them of the upcoming opportunity to enroll in testing. The live testing aims to ensure the service meets the needs of agents and their clients.
HMRC will be urging accountants and bookkeepers to particularly join the private beta testing, emphasising the importance of preparing for the future of tax management. This initiative will help them prepare ahead of the mandatory changes, with access to dedicated MTD customer support.
To participate in the trial, agents need an agent services account (ASA) and will receive detailed information from HMRC in the week starting 22 April 2024. Participating agents will need to sign up clients by that time, using compatible software to maintain digital records and submit quarterly updates.
HMRC will roll out the pilot program targeting firms whose clients are self-employed or landlords with an annual income exceeding £50,000. These individuals will be required to maintain digital records and provide quarterly updates from April 2026, with the threshold lowering to £30,000 by April 2027.
The MTD transition will consolidate all UK tax liabilities into a single platform called the enterprise tax management platform (ETMP), making it simpler for individuals and businesses to access all their tax-related information in one location.
This proactive approach will modernise tax management, reducing errors and ensuring accuracy right from the outset rather than facing issues later. The MTD for Income Tax Self-will Assessment (ITSA) will ultimately prevent errors and misunderstandings that could lead to complications during tax inquiries.
For a smoother transition, let our tax experts at Legend Financial assist. We have helped lots of people and businesses sort out their tax affairs, regardless of their niche or tax situations. Consult with us today and see how we can streamline your taxes!
References
Making tax digital pilot will go live on 22 April. (15 March 2024). Retrieved from Taxation: https://www.taxation.co.uk/articles/making-tax-digital-pilot-will-go-live-on-22-april
HMRC to launch MTD for income tax pilot on 22 April. (14 March 2024). Retrieved from Croner-i Accountancy Daily:
https://www.accountancydaily.co/hmrc-launch-mtd-income-tax-pilot-22-april
HMRC to kick off MTD ITSA testing on 22 April. (15 March 2024). Retrieved from Accounting Web:
https://www.accountingweb.co.uk/tax/hmrc-policy/hmrc-to-kick-off-mtd-itsa-testing-on-22-april
Making tax digital testing to be launched. (28 March 2024). Retrieved from ICAEW: https://www.icaew.com/insights/tax-news/2024/mar-2024/making-tax-digital-testing-to-be-launched
