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Pre-Christmas MTD ITSA announcement: the aftermath

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Published: 04 Jan 2023 Update History

ICAEW’s Tax Faculty asks how businesses can make best use of the additional time before they have to ‘go digital’.

The day after the government’s announcement that MTD ITSA is going to be introduced in phases from 6 April 2026, Caroline Miskin, Anita Monteith and Ed Saltmarsh gathered for a live MTDtalk discussion.

What does the new approach mean for ICAEW members – in business and practice – and their clients? There is a lot to think about.

The consensus so far is that this gives time for more than just building the system and resolving the outstanding problems. MTD ITSA had first been scoped to begin back in April 2018. It now seems outdated and not particularly useful.

Following MTDtalk, the faculty would like to know:

  1. Regardless of the extra two years that have been allowed, will you be digitalising your or your clients’ business accounting records now? In this context, digitalising means using accounting software or spreadsheets to record transactions.
  2. What support would you like from ICAEW during the extended time that businesses now have to prepare? Webinars, live events, something else?
  3. How is your practice going to respond to the additional time? For example, will you still be investing in software now, or postponing making any changes for a year or two?

The Tax Faculty also referred to the UK’s growth agenda in MTDtalk. It asked how the tax system might be used to support growth. How could the policy requirement for a business to adopt digital accounting records for MTD ITSA be adapted to help the business to grow?

Please email any suggestions to Caroline Miskin.

 
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