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Preparing for MTD ITSA:

RC Office Support is working with her clients to help move sole traders and landlords to digital software.

In April 2024 (now postponed), HMRC is mandating a big change in how sole traders and their accountants will manage tax.

As a sole-trader or landlord who earns over £10k each year, you will be required to start to submit tax information 5 times each year and use a digital platform to keep records. In this blog, we outline what the changes are, demystify them and share how we’re going to support you through it.

In a recent survey of 500 sole traders commissioned by Coconut, the UK’s leading sole trader accounting and tax software, there were some surprising results:

● 21% of sole traders have never heard of Making Tax Digital for Income Tax & Self-assessment (MTD ITSA)

● 74% said they felt underprepared for the changes, and

● 61% said that they think the change in rules sounds complicated and confusing.

What is MTD ITSA?

Making Tax Digital is set to be introduced for Income Tax Self Assessment from 6 April

2024, completely changing the way sole traders manage and submit their tax returns.

Based on existing plans, it will affect any sole trader or landlord earning over £10k gross income each year from self-employment or property, transforming the tax requirements of millions of people in the UK.

If you’d like any more information please send me a message via whatsapp