Making Tax Digital (MTD) update
With just over 18 months until rollout, one in five UK sole traders have still not heard of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA), according to accountancydaily.co
Despite the extensive publicity, 20% of sole traders are unaware of the upcoming changes to MTD for income tax, which will see quarterly reporting requirements become mandatory from April 2024.
It will affect any sole trader earning over £10,000 gross income each year from self-employment or property, meaning the rules may also catch the majority of buy-to-let landlords.
Given the scale of the changes, 40% of sole traders who do not currently use an accountant said they would now be willing to pay a monthly amount for accountancy and tax support to help manage the impact of MTD.
Of those that already use an accountant, over three quarters stated that using one had significantly reduced their stress levels, and four out of five said it had freed up their time and allowed them to focus more on running their business.
Partner Michael Fotheringham commented, "the lack of awareness around MTD is worrying. That is why it's so important to partner with an accountant. We work closely with all our clients to ensure they comply with MTD requirements for income tax self-assessment."
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