MTD the next phase…ITSA

21 July 2022

Income Tax Self-Assessment also known as ITSA

ITSA will be introduced on 6^th April 2024 (previously scheduled for April 2023), it applies to all self-employed business owners and landlords who have an income over £10,000. If this applies to you, you will need to comply with the new digital way of submitting tax returns from April 2024.

Although it seems like ages away we recommend beating the crowd and getting yourself set up and familiar with the new ways of doing things sooner rather than later. Giving yourself time to get to know the new software needed for MTD at a pace suitable to you is beneficial to your business rather than trying to rush and learn something last minute.

Firstly, you need to decide on a software that is fitting to you and your business, here at Books & Business we have extensive knowledge in QuickBooks and use it as our chosen compatible software.

Once you have chosen your software the next steps are to begin using it, this will give you time to get to know your way round the software and get some training or support well before the deadline in 2024.

But what are the costs associated with the new MTD ITSA??

These will vary greatly depending on your current set up, for example, a business that doesn’t use spreadsheets or any form of accounting software, as in they keep no form of digital records, will have a much larger outlay than say a business or landlord who already has cloud accounting. The outlay will be in the way of time as well as upfront and ongoing costs.

We have put together a page on everything you need to know about MTD ITSA check it out here. It also includes all the packages we offer with regards to getting you MTD compliant whatever stage you are at.

If you are currently not keeping any digital records now would be a great time to make a change to digital record keeping. If, however you already do this and submit your own Self Assessment Tax return you will need to ensure your current software is compatible with MTD (current HMRC self-assessment software will not be usable once MTD ITSA is in place). Check out our MTD page here for a link to which software packages are MTD compliant.

If you need further assistance or just want to talk through your options regarding MTD drop us an email and we can arrange a mutually convenient time to have a free initial chat.

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Homebuyers in Stamp Duty Sprint Before April Hike

by PH186232 • 20 February 2025

With the 1st April deadline looming, its reported that 550,000 homebuyers are racing to complete purchases before stamp duty jumps back to its 2022 levels. We have read that sales awaiting completion are up 25% from last year, with an average five-month wait putting pressure on buyers to beat the deadline. Currently, first-time buyers pay no stamp duty on homes up to £425,000 when purchasing a property worth up to £625,000, but from 1 st April, that drops to £300,000. The upper limit will also fall from £625,000 to £500,000. It's not just the first-time buyers taking a hit, currently stamp duty is only owed on amounts over £250,000, however from 1 st April, only the first £125,000 will be exempt. Despite the cost increase, it looks like most buyers are still pressing ahead, with some even renegotiating offers to offset the hike. According to our research, regardless of the impending cost increases, property experts such as Rightmove are predicting the demand to stay strong; especially if interest rates continue to fall. With mortgage rates already dipping below 4%, we believe buyers remain hopeful for a more affordable market ahead.