Did you know that self-employed tax is going digital?
As part of the government’s plan to digitalise the UK, HMRC has announced changes to the way the self-employed and landlords do their self assessment for income tax. Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) comes into effect in April 2024.
To comply with the new MTD for ITSA rules, self-employed people and landlords earning over £10,000 a year will need to use compatible software to keep digital records and submit returns to HMRC.
Instead of one annual self assessment return, you will need to submit quarterly updates. In addition, you’ll have to submit an End of Period Statement (EOPS) and a Final Declaration.
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the provided content.
The ultimate guide to self-employed tax
Our expert guide tells you everything you need to know about paying tax to HMRC when you’re self-employed.
- Understanding tax obligations for the self employed
- Self-employment tax thresholds
- Tax returns & calculating your self-employment tax
- National Insurance for the self-employed
- Paying tax to HMRC as a self-employed person
- What happens if you don't pay self-employment tax?
- Self-employed tax and Making Tax Digital