MTD IT for partnerships ― three points to consider

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

Making Tax Digital for Income Tax (MTD IT) quarterly reporting and basis period reform are the biggest changes to administration of income tax in over 25 years. What does this mean for advisers and their clients?

The date at which partnerships are due to enter MTD IT has yet to be confirmed. On 19 December 2022, the Treasury Secretary announced a change to the timetable. This was confirmed in an HMRC press release, saying that the government remains committed to introducing MTD for ITSA to partnerships, but that the previously announced date of 2025 would no longer apply.

Looking forward to this future development, this guidance note looks at some key choices, challenges and opportunities for partnerships:

•
partnership and partners are different: and it matters
•
tax bills need managing in the light of basis period reform
•
quarterly reporting and finalising annual returns: there’s a lot to think about

For more details on MTD for IT and basis period reform see the Making Tax Digital for income

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Employment Tax

Subsistence expenses

Subsistence expensesIntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel which is not to a permanent workplace. See the Travel

14 Jul 2020 13:43 | Produced by Tolley in association with Philip Rutherford Read more

Employment Tax

Long service awards

Long service awardsEmployee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are

14 Jul 2020 12:11 | Produced by Tolley Read more

Employment Tax

Short-term business visitors (STBVs)

Short-term business visitors (STBVs)What is a short-term business visitor?An STBV for UK tax purposes is an individual who performs duties for a non-UK employer and as a part of those duties has been asked to spend a short period working in the UK. There is a common misconception that there is

14 Jul 2020 13:40 | Produced by Tolley in association with Gill Salmons Read more

��˾��ҹ��