Income Tax Self Assessment (MTD)
MTD for Income Tax doesn’t change the rules of income tax. The rules around allowable expenses, personal tax allowances, National Insurance contributions, and so on, all remain the same. All that changes with MTD for Income Tax are the requirements and processes around reporting the information to HMRC. The goal is to give you better insight into your taxes and by extension, you get better visibility into your business finances. This includes your all-important cash flow.
MTD IT has three key components:
> keeping digital accounting records
> filing updates with HMRC every quarter, summarising business income and expenses. Updates must flow directly to HMRC from the digital records without manual input
< an end of year finalisation process.
If you need help with your MTD for Income Tax implemetation or just your Tax Return do not hesitate to get in touch today.
