The countdown is on to the biggest change to income tax self assessment for nearly 30 years. Making Tax Digital for Income Tax and Self Assessment (MTD for ITSA) will take time to sink in with people who will be affected by it. So early warnings and plenty of updates will be required to help them make the transition.
This article sets out what MTD for ITSA information you need to have on your website.
The facts about MTD for ITSA
First and foremost, you need to use your website as a reference source that clients, staff and prospective clients can use to access up to date information about MTD for ITSA. While HMRC has yet to finalise all the details for how it will work, there is sufficient information currently available that sets out what the keys changes will be, namely that income taxpayers will need to:
- use MTD compatible software to file their income and expenditure information;
- submit quarterly income tax submissions (not annual) direct from their accounting software or Excel spreadsheet (via bridging software) direct to HMRC’s MTD for ITSA platform;
- submit an End of Period Statement which enables them to make any tax or accounting amendments and claim any relevant allowances and reliefs; and
- submit a Final Declaration that confirms what tax is due (or can be reclaimed).
This information can be shown in a branded guide produced by your firm, which people can download from the website, or as a blog.
When further updates are released from HMRC, these should also be added to the website guides or blogs. These guides, or links to them, should also be emailed to your staff and clients to keep them in the loop.
As well as a written guide, you may also want to consider creating videos, podcasts or short recorded webinars, so that people can download the information in a format they prefer.
Your MTD for ITSA service offering
Many firms are still deciding how much (or little) support they can offer their MTD for ITSA clients. As soon as this has been confirmed, you should create an MTD for ITSA service page which spells out how you will be helping clients to make the transition from self assessment to MTD for ITSA.
This page should also link to other guides and blogs on your website where people can find out more about MTD for ITSA.
Regular MTD for ITSA blogs
As we get closer to the April 2024 implementation deadline, you need to keep adding new blogs which cover different aspects of MTD for ITSA. Topics could include:
- Who will be affected by MTD for ITSA.
- How clients will need to change their income and expenditure processes in order to comply.
- How and why some clients will need to change their accounting period to the end of March/beginning of April, due to the change of basis period date.
- Top tips for recording income and expenditure information.
- What accounting software is available and which types would best suit different individuals.
- How to access the MTD for ITSA pilot trials.
- How your firm will be helping clients.
- How the online submission of income and expenses information will work.
- The deadlines for submitting quarterly information.
- How HMRC may issue possible penalties and fines if someone fails to comply with the new rules.
In addition to adding these blogs to the website, you should also look to link to them from your newsletters (or copy and paste the actual blog into a PDF or printed newsletter). You may also be able to get local newspapers or magazines to print them on their business pages.
Conclusion
Word is slowly starting to reach taxpayers who will be affected by MTD for ITSA. You need to make sure they hear the facts from you first and not in some Chinese whispers format from their mate down the pub!
How accountants approach their MTD for ITSA communications with their clients and the outside world will shape their practices for the future.
If you would like assistance with writing copy for your website, blogs and guides, I can help. Drop me a line at vicki@momentumforprofessonals.co.uk or call 01822 833300 and we can discuss what you would like to achieve and how I can help.
