28 Sep 2023
Our director Jeremy Kitson is urging businesses in the region to continue preparations for Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA), despite the two-year extension to the deadline.
Jeremy said businesses would be wise to prepare for the legislation now and treat the delay as an opportunity to better learn how to reap the benefits from it.
Instead of launching in April 2024, HRMC announced the first phase of MTD for ITSA will follow a phased approach from April 2026, for sole traders and landlords earning above £50,000.
Jeremy said: “While this deadline has been pushed back considerably, we strongly urge all businesses, including sole-traders and landlords, to make a head start on implementing the practices around the new system.
“The benefits go far beyond simplifying basic accounting tasks. The new system requires data to be submitted quarterly, in addition to an end-of-period statement, which will equip owners with real-time data, reports and guidance available at their fingertips.”
Jeremy said the new system will allow businesses to understand their financial position and performance better, and in real time, empowering them to make smart and more effective changes to their practices.
The system will require digital records to be kept and the digital submission of tax returns, drastically reducing human error.
However, Jeremy urged all business owners to prepare in advance to ensure they are well-prepared for the administration required to submit reports quarterly, using the system to its full advantage.
He concluded: “While we welcome the change, it is the responsibility of all business owners to work it into their everyday business practices. The most effective businesses will prepare in advance and will no doubt reap the benefits of the system sooner.
“The onus is on us as professionals and leaders in the industry and we take that very seriously. At Prime, we always work as an extension of our clients’ teams and are already working with them to implement changes well ahead of the 2026 deadline.
“We welcome any conversation with owners in the region looking for guidance and support and will continue to help the region navigate through this impending change in the months to come.”
To find out more about Making Tax Digital, visit the GOV.UK website.