Making Tax Digital for Income Tax Self Assessment (MTD ITSA) MTD for ITSA will start in April 2024 for self-employed and those with income from property. For partnerships, MTD for ITSA will start in April 2025.

An individual will only be required to register for MTD ITSA if the total of their income is above £10,000 per year. Income and expenses for individuals are required to be provided on a quarterly basis and there is a quarterly filing deadline date.

Penalties will be levied on individuals who failed to submit accounts by their deadline date. With effect from 6 April 2025, penalties will apply to individuals who are currently making self-assessment returns. Penalty points (like driving license penalty points) build up for MTDITSA. Penalties are charged once certain amount of penalty points are reached.

Free software are available on .gov site for reporting MTD ITSA. Follow the links below for further information.

Apari:

https://www.apari-digital.com/?utm_source=gov.uk&utm_medium=web_referral&utm_campaign=hmrc_mtd_software/

Cirrostratus Exedra Ltd:

https://www.vat.direct/

Free Agent :

https://www.freeagent.com/guides/making-tax-digital/

Contact us at Lokk Accountants if you need help in making your returns.