Autumn statement 2023: Changes to Making Tax Digital for Income Tax Self-Assessment

In the ever-evolving topic of Making Tax Digital for Income Tax Self-Assessment, (MTD for ITSA) the Government have announced further changes to simplify the regulations in the most recent Autumn statement.

Changes to Reporting Requirements

In order to comply, the original regulation required affected individuals to submit additional reports to their annual return throughout the year, including four quarterly reports and an end of period statement (EOPS). As a result of a recent review of MTD for ITSA, it has been announced that the fifth stage of reporting, EOPS, has been dropped.

The original intention of the EOPS was to allow individuals to make corrections to previously submitted quarterly returns. However, it has since been highlighted and agreed that the Government will instead simplify and improve the current design of quarterly returns to allow for adjustments.

Jointly-owned Property

Furthermore, it has been decided that landlords with jointly-owned property will be able to choose not to submit quarterly updates of their expenses which relate to jointly owned properties. These records will still need to be submitted before they finalise their tax position for the year.

Multiple Agents

For individuals with more than one tax agent, the Government has also committed to developing a solution to allow multiple agents to act on their behalf for MTD. This was seen as an issue beforehand mainly for those individuals with both a bookkeeper and an accountant.

Affected individuals should see these changes as a positive in their preparation for MTD for ITSA as it will reduce the administrative burden throughout the year. It’s an encouraging sign that the Government have continued to review the current requirements and are making positive changes in the lead up to the deadlines.