HMRC’s Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) aims to improve the UK tax system’s accuracy and efficiency. Businesses, self-employed individuals, and landlords earning over £50,000 in gross business and/or property income must comply with MTD for ITSA by the new deadline of April 2026. The following year, in April 2027, the requirement extends to those earning over £30,000.
Although the deadline for registering for MTD for ITSA has been postponed, it is still recommended to adopt cloud accounting software as soon as possible.
How MTD Cloud Accounting Software Works
MTD-compliant cloud accounting software sends quarterly summary updates to HMRC through a digital account. This software provides a clear view of tax owed, allowing for better preparation for future tax bills.
Key Benefits of MTD Cloud Accounting Software
- Reduced errors and inconsistencies: Digital record-keeping and the electronic submission of tax information reduce the likelihood of errors and inconsistencies made by people.
- Digitised receipts: Associated apps make it easy to capture and digitise receipts for seamless record-keeping.
- Faster decision-making: Real-time financial information and performance insights allow for quicker, more informed decision-making.
- Automated functions: Automate important financial functions like cashflow forecasting to save time and reduce costs.
- Remote access: Stay connected with your business even when you’re on the go through secure remote servers.
- Up-to-date software: Enjoy the latest functions and legislative compliance with up-to-date software.
- Automatic saving: Work is saved automatically as you go, saving time and money on backup procedures.
- Collaboration with accountants: For a smooth tax process, you can work with your accountant from anywhere in the world and at any time.
Get in touch
Ensure a smooth transition to the new system by being prepared and using the right software. Our team of Cloud Accounting experts are available to support you through the transition. Contact us at hello@bkplus.co.uk
