The need for self-employed business owners and landlords to submit an annual tax return is changing. The old system is being replaced with “Making Tax Digital for Income Tax Self Assessment” (MTD for ITSA), a new HMRC scheme that self-employed business owners and landlords will be using to report their earnings and pay income tax.
It was due to start from April 2023, but the government has just confirmed it will be delayed a further year until April 2024. After this date, all sole traders, partnerships and landlords with a total business or property income above £10,000 per year will have to comply with MTD for ITSA from their first accounting period. (more…)