{"id":5067,"date":"2021-10-05T11:30:05","date_gmt":"2021-10-05T10:30:05","guid":{"rendered":"https:\/\/www.newbycastleman.co.uk\/?p=5067"},"modified":"2021-11-04T14:37:03","modified_gmt":"2021-11-04T14:37:03","slug":"making-tax-digital-for-self-assessment","status":"publish","type":"post","link":"https:\/\/www.newbycastleman.co.uk\/industry-news\/making-tax-digital-for-self-assessment\/","title":{"rendered":"Making Tax Digital for Self-Assessment"},"content":{"rendered":"<\/span> 4<\/span> minutes to read<\/span><\/span>

The Government have once again extended the deadline for Making Tax Digital for Income Tax Self Assessment (MTD ITSA). Following the Government announcement and publication of a new Statutory Instrument on 23 September 2021, further details of the new digital tax administration system have been released including who is affected and how this new system will be implemented.<\/p>\n

We have outlined the key points that Self Assessment tax payers should be aware of and will continue to update our news page with any further announcements. More detailed information can be found on the gov.uk website and we have included some useful links at the end of this article.<\/p>\n

Extension to 6 April 2024<\/strong><\/p>\n

The Government\u2019s original 10-year strategy published in July 2020 had intended MTD ITSA to be rolled out on 6 April 2023 however as a result of the continued challenges imposed by the Coronavirus pandemic the Government have now extended this.<\/p>\n

MTD ITSA will now be introduced from 6 April 2024 for sole traders and property landlords, and 6 April 2025 for partnerships. However, qualifying individuals can voluntarily start using the MTD ITSA service already.<\/p>\n

Who will use MTD ITSA?<\/strong><\/p>\n

Sole traders or UK property landlords can voluntarily sign up for MTD ITSA and start using the service immediately provided they are UK resident, they have no other sources of reportable income, and are registered with Self Assessment with up-to-date tax returns and payments.<\/p>\n

From 6 April 2024, UK resident and domiciled Sole traders and landlords (with either UK and\/or foreign property income) will be required to use the service where their self-employment or rental turnover is in excess of \u00a310,000. For those with both self-employment and rental income, if the combined total turnover of both sources exceeds \u00a310,000 you will also be required to use MTD ITSA.<\/p>\n

Where income is from a joint property the \u00a310,000 requirement will be assessed on an individual\u2019s share and not on the total for the property.<\/p>\n

For non-UK resident or domiciled individuals, the \u00a310,000 requirement will be assessed only on UK source income i.e. UK property or UK self-employment income and will disregard foreign property or foreign self-employment income.<\/p>\n

Individuals may be able to apply for an exemption from MTD ITSA if any of the following apply:<\/p>\n