Is Quickfile software going to to be available for Making Tax Digital for Income Tax (MTD for ITSA)
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Best regards
I don’t work for QuickFile so I can’t speak for their future plans, but I know there’s a “periodic report” tool under development based on the MTD specs as they were at the time it was introduced, and I presume this will eventually become a full MTD implementation by the time MTD reporting becomes compulsory in another couple of years time.
Thanks Ian, appreciate the quick response. I am aware that HMRC will be wanting quarterly reports starting soon. Have to weigh up which software to use going forward. Massive change from the once a year stuff we submit now for clients for SA.
April 2023 is when it starts from so not too soon.
Little trick if you want to delay it. Either extend your accounting period or switch to Ltd company. You’ll get an extra year (if sole trader) or till 2026 if ltd to worry about it.
Thanks Paul. 2023 is not so far away! I would like a whole year of testing before that date so that I can be confident that all is working as it should.
Only @QFSupport can confirm their future plans.
I can confirm that we do fully intend to support MTD for ITSA. As @ian_roberts mentioned we have already developed a Periodic Update report that you can tryout (see here for more details).
We are closely tracking HMRC’s roadmap and will continue to develop the systems ready for the full release by April 2023.
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As you may have read MTD for ITSA has been delayed until April 2024. This is in light of the challenges faced by many UK businesses as the country emerges from the Covid 19 pandemic.
We remain committed to bringing all the additional functionality to allow users to file using the new MTD for ITSA platform and are actively engaging with HMRC to bring this about.
Hi Glenn, the fact that you are still working with HMRC is really good news. There is also a shortage of free software that can handle M T D and that is easy to use but has really Gucci features like QF. The extra time will give us all the chance to put software into place.
I just came across that article in AccountingWeb and thought it is a good idea to share it here.
Glenn, can you give us some indication of how MTD ITSA will work for Partnership accounts within QF? I would assume the software will need to split the reported income/expenditure according to partnership share split and make separate submissions for each partner.
Hi @MoKaPottery
General partnerships that earn over £10,000 a year are not mandated to sign up for Making Tax Digital for ITSA until 6 April 2025. We will look more closely at how this will be implemented following the initial rollout. There are a number of ways we can handle this, although I’m afraid we don’t have any concrete plans as yet. We will share these with you in due course.
We too have a few partnerships that will be migrating to Quickfile but thats almost 3 years away, in the meantime we are focusing on the MTD for self-employment and property.
Glen I posted a couple of questions about the MTD reporting on QuickFile as we have a few self employed who also get rent for a single property rental totalling the ÂŁ10k income threshold: Making Tax Digital - Self Assessment - #7 by George_H
It would be good if we could get an idea of how quickfile will or will not handle self employed with a property income, especially the property part as quickfile does not currently cater for property income and property expenses so even a separate account for the property is not appropriate.
We are currently building all the tools needed to report your property income and expenditure to HMRC under the new MTD ITSA regime.
Under the new rules you will need to file a Periodic Update for your self employed income/expenditure and a separate Periodic Update for your property income/expenditure. Right now we recommend to isolate these activities into individual QuickFile accounts.
Closer to the April 2024 start for MTD ITSA.
When a second quickfile account is created for property rental only, will there be a new Business Type available and designed for “Property”?
Currently when selecting from the current 5 business types “self employed” is the closest but that type does not have any of the nominal accounts for property so all the deletable nominals have to be removed and new suitable ones created to match the property tax return which is laborious, especially when its just for a single property.