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.
Making a headstart
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.
Preparing in advance
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.
Prime Accountants Group has announced Morgan Davies as our new managing director, succeeding the long-serving Kevin Johns.
Morgan formally takes over the role on September 1 as part of our advanced succession planning, which has been taking place behind the scenes for some time.
Kevin Johns
Kevin has worked for Prime for 31 years and has been its managing director since 2015.
As well as holding the positions of Solihull BID chairman and vice-president of the Solihull Chamber of Commerce, Kevin has spearheaded Prime’s fundraising efforts, which have seen the business raise tens of thousands of pounds for charities such as Solihull Life Opportunities (SoLO) and Birmingham Children’s Hospital.
Morgan Davies
Morgan is one of the four original founding partners of Prime from 2007 and steps up from his role as director overseeing our audit and accounts department.
While Kevin is stepping down as managing director, he will continue to work with his portfolio of clients and remains on the senior leadership team.
To facilitate Morgan taking on his new role, fellow directors Jeremy Kitson and Paul Guise will take over his responsibility for audit and accounts.
Succession Planning
Kevin, who was awarded a British Empire Medal (BEM) in the New Year’s Honours list in 2019 for services to Solihull, said: “I’ve planned to gradually retire over the next few years, so handing over to Morgan now means we will have a far more controlled and better transition.
“I’ll still be part of the leadership team, I’m still looking after my clients but I just won’t be leading on the day-to-day anymore.
“I said when we marked my 30th anniversary with Prime that I’ve been leaving for a long time! This is long-term succession planning and a natural progression in any business. I’m passing the baton to someone in Morgan who is exceptionally capable and well-positioned to keep the firm on exactly the right path.”
The promotion comes in a milestone year for Morgan, who has worked for the firm for 20 years and has been in practice for 30 years.
He said: “This is part of a succession plan we have worked hard on. I’ve been audit and accounts lead ever since I’ve been here at Prime, which is effectively half the firm, as well as being part of the senior leadership team.
“The experience that gives you is seeing every element of the business up close. It’s a natural fit, we work closely together and I have supported Kev for years.
“The culture of this company is to develop people and empower them to succeed and grow, and this demonstrates that with aplomb. As I move up to managing director, two very capable directors in Paul and Jeremy move up to audit and accounts – it’s good for everyone within the pyramid at Prime.”
About the Author: Jeremy Kitson
