MTD for ITSA
Coconut offers an easy-to-use app that really does simplify your self employed finances.
Date posted: 2022-10-13
Did you know that HMRC are introducing the next step of Making Tax Digital, with it going live from April 2024?
What is Making Tax Digital (MTD)?
MTD is a government initiative designed to simplify tax for businesses and individuals. In 2019 MTD for VAT was introduced, with the vast majority of VAT-registered businesses now required to file their returns using MTD-compliant software.
What is MTD for Income Tax Self Assessment (MTD ITSA)?
MTD for ITSA is the next step being introduced by HMRC.
If your income from self employment is more than £10,000 per year you will be required to keep digital financial records and file your returns using MTD-compliant software.
Why do you need to think about this now?
It’s true, April 2024 does seem a long way off but it will come around quickly.
Here are some other key reasons why you should move to MTD-compliant software now:
- Using software will save you time compared to keeping paper-based records
- You will keep more accurate financial records, and
- You will be ahead of the last minute rush if you switch now
How we can help
It might seem very confusing, but don’t worry, we have lots of experience of helping businesses and individuals make the switch to software.
Coconut offer an easy-to-use app that really does simplify your self employed finances. You connect your bank account, send your customer invoices, and upload your expense receipts all within the app, with the good news being their software will be MTD-compliant by April 2024.
There is still plenty of time for us to help you.
Get in touch with us now to discuss how we can help you.