On 1 July 2022, HMRC published four draft Notices which provide further details on the operation of Making Tax Digital for Income Tax self-assessment (MTD ITSA) which is due to come into effect from April 2024. The Notices contain limited information, mainly focused on the ‘categories’ of income and expenditure which will need to be reported in quarterly returns. HMRC have committed to publishing guidance “to explain how customers can reflect any accounting and tax adjustments that may be required to reconcile the quarterly submissions to the final taxable profits for the year” later in the year. HMRC are requesting comments on this draft tertiary legislation by 28 July 2022.
Source KPMG
