News
Making Tax Digital for Income Tax: What did the Autumn Statement change?
In November 2023, the Chancellor announced the Autumn Statement. While he did not mention Making Tax Digital in his speech, there have been some changes announced in the executive summary.
By Catherine Heinen, FCCAMaking Tax Digital for Income Tax Self-Assessment (MTD for ITSA) is an impending update. It’ll change the way businesses record and report their financial information to HMRC (HM Revenue and Customs). For more information check out our knowledge hub here.
In the Autumn Statement, the Government announced design changes to the reporting obligations under MTD for ITSA. The points of note are:
End of Period Statement removed
The requirement to submit an End of Period Statement to confirm the information is correct and complete has been removed. This will simplify the process and lighten the administration burden for businesses.
Cumulative Quarterly Updates
The quarterly updates, which are summaries of income and expenditure, will now be cumulative. Updates will include the previous quarters’ information, building a full picture of the year-to-date information. Businesses can therefore correct and amend submission throughout the year rather than having to resubmit previous quarterly updates.
Landlords with jointly owned property given simplification
Landlords with jointly owned property will now be able to:
- choose not to submit quarterly updates of their expenses which relate to jointly owned properties. These records will still need to be submitted before they finalise their tax position for the year.
- keep less detailed digital records in relation to these properties to simplify the transfer of records between joint owners.
Access for multiple agents
HMRC is creating a way for taxpayers to have multiple tax agents represent them. A business may have a different agent for the quarterly updates and the end of year accounts.
Exemptions
Some taxpayers will also be exempt from Making Tax Digital having recognised that there may be barriers and/or limited benefits. Those exempt include those without a National Insurance number, and foster carers.
The Government's update simplifies and improves the system for small businesses.
How can TaxAssist Accountants help?
If you still require assistance with Making Tax Digital, speak to our qualified and friendly team today. Call TaxAssist Accountants on 01603 258690 or drop us a line using our online enquiry form.
Date published 27 Nov 2023
Catherine Heinen, FCCA
Catherine is a Technical Content Writer at TaxAssist Accountants, and a qualified accountant. With experience working at two accountancy practices in the UK top 50 accountancy firms according to Accountancy Age, Catherine has significant experience in accounts, tax returns and advising clients. Catherine ensures businesses, business owners and individuals are kept up to date and informed by providing concise and informative technical material.
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.