What is HMRC'S Make Tax Digital (MTD) Initiative?

August 4, 2022

HMRC sets forth its updated timetable followed by its set of criteria for enrolling its mission for enforcing digital taxation.

When shall you be able to register for this?

Outstanding Refurbish

Towards 2021 end, HMRC stated that, commencing 2022 it should activate the digitisation of taxation procedures in order to satisfy its mission of MTD ITSA for firms.

Unfortunately, it has crossed the purported time and exceeded the due time of activation

MTD ITSA shall become mandated from April 2024. It shall be applicable, initially, only to land merchants, individual vendors and people who run their own trade of services. Thankfully, it shall not be applicable with firms or partnerships. 

The primary purpose for MTD ITSA is to enforce a digital quarterly record of business remuneration and payments to HMRC.

However, firms may not be allowed to join the new "mission" until July.

If you enrolled, you will have less time to make sure that your records for the previous term are in coherence with the needs of the MTD ITSA requirements, in order to submit the first set of records which would be due within the 5th of  August 2022.

In the pilot timeframe, there are no fines if you are delayed in the submission of your quarter term records. Thereby, if you may wish to enroll in the introductory period during the financial year of 2022/23, here are a few points to be aware of.

  • You should give in all your four reports for the particular year.
  • You shall be allowed check up on any term quarter which you may have skipped, foregoing the chance of encountering a fine.

Technical Issues

You can only file MTD ITSA reports by using a software which can adhere to its technology. As of now there  exist only 3 HMRC-compatible servers.

We Know How It's Done

Get in touch to know which software is compatible with MTD ITSA. We can help you make your tax digital!