untied launches Making Tax Digital for Income Tax Confidence Tracker
untied, the UK’s personal tax app, today announced that it has launched a Making Tax Digital Confidence Tracker which will monitor the awareness over time of the mandation of a new way of tax reporting for self-employed people and landlords from 2024.
These changes – Making Tax Digital for Income Tax – will require in-year reporting and the use of new software to file digital records. It will be compulsory for between four and six million people from April 2024.
Based on research, untied has calculated awareness scores (max 100) that will be tracked over the next two years:
- Accountants 65.5
- Self-employed 34.0
- Landlords 31.2
The first monthly survey reveals that slightly over a quarter (27%) of the self-employed individuals and 25% of landlords questioned said they were either extremely or very aware of what is coming up. Almost half (46%) of self-employed and 50% of landlords revealed they were not at all aware of MTD for Income Tax.
When it comes to accountants, awareness is higher. Almost 59% are either extremely aware or very aware of the forthcoming changes with 11% saying they are not at all aware of Making Tax Digital for Income Tax Self-Assessment. Furthermore, 45% report they are extremely/very confident that they know what they need to do to be ready for it, with slightly more than one in five (21%) disclosing that they aren’t at all confident or they just don’t know.
Kevin Sefton, CEO, untied commented: “Making Tax Digital for Income Tax Self-Assessment is the biggest change in personal tax since the implementation of self-assessment a quarter of a century ago. We’ve launched this tracker as a barometer of awareness levels around it. Accountants are already showing that they have high awareness levels, notwithstanding that few would have been able to take part in HMRC piloting so far. The sector will watch the monthly analysis with interest.”
