Fresh thinking is required on making tax digital (MTD) for income tax self-assessment (ITSA) policy says the ICAEW. The accountancy body has written to HMRC as part of its engagement on the review of how the project could be shaped to suit the needs of smaller self-employed and property businesses.
ICAEW said the project should be refocused on what can realistically be delivered in 2026 and on digital record keeping and filing from software.
In particular ICAEW considers that the administrative burden associated with quarterly updates is disproportionate and needs a rethink. It states in the letter: ‘Even when a taxpayer is maintaining digital records on a regular basis having to ensure that these records are complete and checked by specific quarterly deadlines adds extra compliance burdens especially where a bookkeeper or agent is involved as we expect in the majority of...
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