Tag: Self Assessment

Need to register for Self Assessment? Top 5 myths – debunked

Anyone who needs to complete a Self Assessment tax return for the first time to cover the 2023 to 2024 tax year, should tell HM Revenue and Customs (HMRC) by 5 October 2024.

There’s plenty of myths about who needs to file a Self Assessment return before the 31 January 2025 deadline and HMRC today debunks some of the most common ones:

Myth 1: “HMRC hasn’t been in touch, so I don’t need to file a tax return.”

Reality: It’s the individual’s responsibility to determine if they need to complete a tax return for the 2023 to 2024 tax year. There are many reasons why someone might need to register for Self Assessment and file a return, including if they:

  • are newly self-employed and have earned gross income over £1,000  
  • earned below £1,000 and wish to pay Class 2 National Insurance Contributions voluntarily to protect their entitlement to State Pension and certain benefits  
  • are a new partner in a business partnership
  • have received any untaxed income over £2,500
  • receive Child Benefit payments and need to pay the High Income Child Benefit Charge because they or their partner earned more than £50,000

More information can be found on GOV.UK and anyone who is unsure if they need to file Self Assessment can use the free online tool on GOV.UK to check. Once registered for Self Assessment, they will receive their Unique Taxpayer Reference, which they will need when completing their return and paying any tax that may be due. Customers will have to reactivate their account if they have registered for Self Assessment previously but did not send a tax return last year.

Myth 2: “I have to pay the tax at the same time as filing my return.”

Reality: False. Even if someone files their return today, the deadline for customers to pay any tax owed for the 2023 to 2024 tax year is 31 January 2025. Customers may also be able to set up a Budget Payment Plan to help spread the cost of their next Self Assessment tax bill, by making weekly or monthly direct debit payments towards it in advance.

Myth 3: “I don’t owe any tax, so I don’t need to file a return.”

Reality: Even if a customer doesn’t owe tax, they may still need to file a Self Assessment return to claim a tax refund, claim tax relief on business expenses, charitable donations, pension contributions, or to pay voluntary Class 2 National Insurance Contributions to protect their entitlement to certain benefits and the State Pension.

Myth 4: “HMRC will take me out of Self Assessment if I no longer need to file a return.”

Reality:  It is important customers tell us they’ve either stopped being self-employed or they don’t need to fill in a return, particularly if they have received a notice to file. If they don’t, HMRC will keep writing to them to remind them to file their return and we may charge a penalty.

Customers may not need to complete a tax return if they have stopped renting out property, no longer need to pay the High Income Child Benefit Charge, or their income has dropped below the £150,000 threshold and have no other reason to complete a tax return. If customers think they no longer need to complete a tax return for the 2023 to 2024 tax year, they should tell HMRC online as soon as their circumstances change. Customers can watch HMRC’s YouTube videos on stopping Self Assessment to guide them through the process.

Myth 5: “HMRC has launched a crackdown on people selling their possessions online and now I’ll have to file a Self Assessment return and pay tax on the items I sold after clearing out the attic.”

Reality: Despite speculation online earlier this year, tax rules have not changed in this area. If someone has sold old clothes, books, CDs and other personal items through online marketplaces, they do not need to file a Self Assessment and pay Income Tax on the sales. HMRC’s guidance on selling online and paying taxes can be found on GOV.UK.  

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to make sure you are clear about your tax responsibilities.

“These myth busters and our range of resources on GOV.UK can help if you are unsure if Self Assessment applies to you or think you no longer need to file a tax return. Just search ‘Self Assessment’ on GOV.UK to find out more.”

HMRC has a wide range of resources to help customers register for Self Assessment, including video tutorials on YouTube and help and support guidance on GOV.UK. 

HMRC urges customers to file their return early to provide peace of mind and to also allow time to consider opportunities to spread the cost of their tax bill, claim refunds earlier and avoid costly errors caused by rushing.

Customers need to keep records to fill in their tax return correctly and they may be asked for documents if HMRC checks their return. Penalties may be issued if records are not accurate, complete and readable. Self-employed workers must also keep records for their business income, outgoings and make sure they’re registered with HMRC as self-employed. More information can be found on GOV.UK.

People should be cautious of potential scams and never share their HMRC login information with anyone, even a tax agent if they have one. HMRC’s scam advice can be found on GOV.UK.

One week to go until Self Assessment payment on account deadline

Millions of Self Assessment customers are expected to make a ‘payment on account’ to HM Revenue and Customs (HMRC) by the 31 July deadline in a bid to spread the cost of their tax bill for the 2023 to 2024 tax year.

More than 12 million people need to file a Self Assessment return for the 2023 to 2024 tax year and pay any tax owed before 31 January 2025.

However, to help spread out payments throughout the year, many people have to pay their tax by making 2 payments on account. If the previous year’s tax bill was over £1000, each payment is half that amount with the first payment having been made on 31 January and the second one due on 31 July.

If there is still tax to pay after customers have made their payments on account, they will need to make a ‘balancing payment’ by 31 January 2025.

Payments can be made securely via the HMRC app at any time of day or night.

Those who have yet to file their tax return for the 2023 to 2024 tax year, can do it early so they know what they owe and can decide how best to make the payment in full by the deadline.

Filing early also means that if a tax refund is due, they can receive it sooner.

There are a range of payment options, including weekly and monthly payment plans, available on GOV.UK. Customers can set up a plan before they have filed their tax return and the payments will be used against their next tax bill.

Those who are new to Self Assessment will need to register to get their Unique Taxpayer Reference before they can file their tax return. Anyone who is unsure about whether they need to file a tax return can use the online checking tool on GOV.UK.                                                                                          

Visit GOV.UK to find out more about Self Assessment and how to file a tax return.

Visit GOV.UK to download the HMRC app

HMRC has updated guidance on filing tax returns early and help around paying tax bills on GOV.UK.

Online help and support is available for customers who need support in completing their Self Assessment tax return.

Essential HMRC Rules for the Self-Employed: Common Pitfalls to Avoid

For self-employed individuals in the UK, understanding and complying with HM Revenue & Customs (HMRC) regulations is crucial.

Managing your own tax affairs can be complex, and certain aspects of the rules are frequently overlooked, leading to errors that can be costly.

Adam Collins, CEO of Ignite SEO aims to highlight common mistakes made by self-employed individuals and offer guidance on how to avoid them:

Failing to Register for Self-Assessment on Time

One of the first steps you need to take as a newly self-employed individual is to register for Self-Assessment. This needs to be done by the 5th of October in your business’s second tax year. Missing this deadline can result in penalties, and you risk getting caught up in last-minute hassles to sort your taxes.

Misunderstanding Expense Deductions

Determining what expenses can be claimed is critical for the self-employed. While you are allowed to deduct legitimate business expenses to reduce your taxable income, not all expenses are allowable.

For instance, personal expenses must be strictly separated from business ones. Common missteps include improperly claiming home office expenses or the cost of commuting, which is not deductible unless it’s travel to a temporary workplace.

Poor Record Keeping

Accurate record-keeping is vital but often neglected by the self-employed. HMRC requires you to keep records of your income and expenses for at least 5 years after the 31 January submission deadline of the relevant tax year. Failure to maintain proper records can lead to inaccurate tax returns and the potential for stressful and costly audits.

Ignoring National Insurance Contributions

Many self-employed people overlook the importance of National Insurance Contributions (NICs). There are two types you might need to pay: Class 2 if your profits are above a small earnings threshold, and Class 4 if your profits exceed a lower limit. Not understanding or forgetting these contributions can lead to unexpected bills and penalties.

Inadequate Planning for Tax Payments

Tax payments can be a significant financial burden if not planned for adequately. Self-employed individuals are required to pay their taxes through Self-Assessment by the 31st of January each year, and those with significant tax bills must also make payments on account, which are advance payments towards the next year’s tax bill, due in January and July. Failing to budget for these can lead to cash flow issues.

Overlooking VAT Registration

If your annual turnover exceeds the current VAT threshold of £90,000, you must register for VAT. Many self-employed individuals either register too late or fail to register at all, which can lead to penalties and a backdated tax bill. Even if you don’t exceed the threshold, voluntary registration might benefit you by allowing you to reclaim VAT on purchases.

Adam Collins, CEO of Ignite SEO says: “Being self-employed brings the freedom to manage your own business, but it also requires diligence in handling your tax affairs.

“By being aware of these common pitfalls and actively working to avoid them, you can ensure that you stay compliant with HMRC’s regulations and avoid unnecessary penalties.

“Regularly updating your knowledge and possibly consulting with a tax professional can also help manage the complexities associated with self-employment taxes.”

HMRC: A record 11.5 million tax returns filed by the deadline

A record-breaking 11.5 million taxpayers submitted their Self Assessment tax returns for the 2022 to 2023 tax year by midnight on 31 January, HM Revenue and Customs (HMRC) reveals.

More than 12.1 million taxpayers were expected to file a tax return and pay any tax owed. Of those that met their obligations by the deadline, 778,068 beat the clock to complete it on 31 January, including:

·         61,549 customers who filed between 16:00 and 16:59 – the peak hour for filing

·         32,958 customers who filed between 23:00 and 23:59

HMRC is urging anyone who missed the deadline to submit their tax return now. There is an interactive tool on GOV.UK to help customers with their return. Late filing and late payment penalties are charged for failure to meet the deadline.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thank you to the millions of Self Assessment customers and agents who met the deadline.

“Anyone who has yet to file and is concerned that they cannot pay in full may be able to spread the cost of what they owe with a payment plan. Search ‘pay your Self Assessment’ on GOV.UK to find out more.” 

The Self Assessment payment deadline was also 31 January, and anyone with outstanding tax to pay should do so as soon as possible.

There are many ways to pay, including online, using the HMRC app, by bank transfer, or setting up a Time to Pay payment plan. There is a video on YouTube to help customers set up an online payment plan.

A full list of payment options can be found on GOV.UK. There is also a video on YouTube that explains a customer’s Self Assessment tax bill and the different ways to pay.

Customers can plan ahead for their 2023 to 2024 tax bill and set up a regular payment plan to help spread the cost. HMRC’s Budget Payment Plan enables those who are up to date with previous payments to make regular weekly or monthly contributions towards their next tax bill.

A Budget Payment Plan is different from payments on account, which are usually due by midnight on 31 January and 31 July. 

Taxpayers who file or pay late but have a reasonable excuse can appeal penalties on GOV.UK. HMRC has published interactive guidance to explain the process and signpost them to the correct course of action.

People should be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

Almost 250,000 early birds file Self Assessment in first week

Almost 250,000 Self Assessment customers filed their 2022 to 2023 tax return during the first week of the tax year, HM Revenue and Customs (HMRC) has revealed.

The number of customers choosing to file on the first day of the new tax year (6 April) has increased in recent years. Those opting to file in the first week of the new tax year has increased by nearly 100,000 customers since 2018.

The data, which examined numbers of customers who filed between 6 and 12 April, also revealed the most popular day to file a tax return during that week was 6 April and that Self Assessment customers enjoy a day of rest with the Sunday being the least popular day to file.

The increase in early bird filers means more customers are benefitting from filing their tax return for the 2022 to 2023 tax year well ahead of the deadline on 31 January 2024. Those who file early have more control over their financial affairs can take advantage of finding out what they owe and budget for it. If they are owed money, they can get their refund much sooner.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Our figures show more and more customers are benefitting from filing early which means they can relax knowing their tax return is complete, know what they owe and can budget.

“For those who haven’t yet thought about their tax return, go to GOV.UK, search ‘Self Assessment’ to get started.”

If customers are unsure whether they need to complete a tax return, they can check if they need to complete a tax return by using the free online tool on GOV.UK.

If customers need support to file a  tax return, there is no need to ring as HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, as well as a webchat service.

Customers who have already filed their tax return can now take their time to plan to pay in the best way that suits them and their cash flow which may mean setting up a budget payment plan to manage their bill to pay before the deadline.

Customers who file early will also find out if they are owed money sooner and can go ahead and claim the refund once their tax return is submitted and processed. Customers can also check if they are due a refund in the HMRC app once they have filed their return.

If customers think they no longer need to complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC – so that HMRC can issue a withdrawal notice – before the deadline on 31 January 2024 to avoid any penalties. 

HMRC has produced two videos explaining how customers can go online and stop Self Assessment if they are self-employed and those who are not self-employed.

It is important that customers let HMRC know of any changes to personal details or circumstances, such as a new address or name, or if they have stopped being self-employed or their business has closed. Don’t assume someone else will update HMRC, customers can make changes via GOV.UK.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

Filing figures for the first week of the tax year

Year201820192020202120222023
Filing date17/1818/1919/2020/2121/2222/23
6 April36,939*35,25596,51963,76866,49277,517
7 April*18,145*22,53648,23738,19237,06731,715
8 April*15,20132,60239,67430,97128,645*18,896
9 April23,98328,76534,64125,119*18,989*14,377
10 April22,06024,42624,391*19,561*17,19029,284
11 April20,52222,516*15,904*17,27731,38138,006
12 April19,39021,126*11,55028,02328,97336,415
Total156,240187,226270,916222,911228,737246,210

*Weekend

These figures do not include paper returns or amendments for previous years.

It’s time to register for Self Assessment, says HMRC

HM Revenue and Customs (HMRC) is reminding anyone who is new to Self Assessment for the 2022 to 2023 tax year that they have just two weeks until 5 October to tell HMRC and register.

New Self Assessment customers could be someone who has set up a side hustle to earn money in addition to their PAYE job or disposed of cryptoassets; they may be newly self-employed or a new landlord renting out property.  Whatever the circumstances, if a customer has any income that they have not already paid UK tax on, they need to register for Self Assessment.

Customers can use HMRC’s online checking tool on GOV.UK to quickly assess whether they will need to complete a tax return. And they can use the step-by-step guide to check what they need to do to file their first Self Assessment tax return.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “If you are new to Self Assessment and unsure how the process works – HMRC is here to help. We have a wealth of resources and guidance available on GOV.UK to help customers register, sign up to the online services and complete their tax return.

“We want to help customers get their tax right first time, just search ‘Self Assessment’ on GOV.UK to find out more.”

Customers can register for Self Assessment on GOV.UK. They will then receive their Unique Taxpayer Reference, which they will need when completing their return.

The deadline for customers to file their tax return online and pay any tax owed for the 2022 to 2023 tax year is 31 January 2024. And last year, 96% of customers filed their return online.

Filing online means customers don’t have to complete it all at once, they can save their progress and finish it later and have that added reassurance that HMRC has received their form when they press submit.

HMRC has a wide range of resources to help customers file a tax return including a series of video tutorials on YouTube and help and support guidance on GOV.UK. HMRC has produced 2 videos to help customers registering online for Self Assessment these are for those who are self-employed and those who are not self-employed.

If customers think they no longer need to complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC before the deadline on 31 January 2024 to avoid any penalties or needing to complete a tax return. HMRC has produced 2 videos explaining how customers can go online and stop Self Assessment if they are self-employed and those who are not self-employed.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

HMRC: Do you need to complete a Self Assessment tax return this year?

If someone has had a change in circumstances, then they might need to complete their first ever Self Assessment tax return for the 2022 to 2023 tax year, HM Revenue and Customs (HMRC) is reminding people.  

Taxpayers can use the quick and easy free online checking tool on GOV.UK and register with HMRC by 5 October if they do need to self-assess. Taxpayers can also use it if they think they may not need to complete one this year too.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:  “It is important that taxpayers check if they need to complete a Self Assessment tax return so they can pay the right amount of tax owed and avoid penalties for not filing a return.

“It is quick and easy to check by using the interactive tool on GOV.UK – there is no need to ring us.” 

Taxpayers may need to complete a tax return if they:

  • are newly self-employed and have earned more than £1,000  
  • have multiple sources of income  
  • have received any untaxed income, for example earning money for creating online content  
  • earn more than £100,000 a year 
  • earn income from property that they own and rent out 
  • are a new partner in a business partnership 
  • are claiming Child Benefit and they or their partner have an income above £50,000
  • receive interest from banks and building societies (more than £10,000) 
  • receive dividends in excess of £10,000 
  • need to pay Capital Gains Tax  
  • are self-employed and earn less than £1,000 but wish to pay Class 2 NICs voluntarily to protect their entitlement to State Pension and certain benefits 

The online checking tool can also be used by those who may no longer need to do Self Assessment, including if they: 

·         gave up work or retired 

·         are no longer self-employed 

·         earn below the minimum income thresholds 

If taxpayers no longer think they need to complete a Self Assessment tax return for the 2022 to 2023 tax year, they should tell HMRC before the deadline on 31 January 2024 to avoid any penalties. 

Taxpayers can register for Self Assessment on GOV.UK. Once registered, they will receive their Unique Taxpayer Reference, which they will need when completing their tax return. 

HMRC has wide range of resources to help taxpayers file a tax return including a series of video tutorials on YouTube and a new  step by step guide. for anyone that is filing for the first time.   

Taxpayers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.  

One week left to file for fewer than 3.4 million Self Assessment customers

Millions of customers still to file their Self Assessment tax return with one week left until the deadline

With one week to go until the deadline, HM Revenue and Customs (HMRC) is urging fewer than 3.4 million customers to get their Self Assessment tax return done.

More than 12 million customers are expected to file a tax return for the 2021 to 2022 tax year and pay any tax owed by 31 January deadline. To date, almost 8.7 million customers have already filed their tax return.

Last year, more than 10.2 million customers filed their tax returns for the 2020 to 2021 tax year by the deadline on 31 January 2022.

Anyone who is yet to start their Self Assessment, or needs help completing it, can visit GOV.UK to access a wide range of resources including guidance, webinars and YouTube videos. Customers are encouraged to check online for help before calling HMRC during what is the busiest time of the year.

Myrtle Lloyd, Director General for Customer Services, said: “Time is running out for millions of people who still need to file their Self Assessment and pay any tax owed.

“There’s no need for customers to call us, they can save time and search ‘Self Assessment’ on GOV.UK for a wealth of information and resources to help them complete their tax return.”

Customers can pay their tax bill in around 60 seconds via the free and secure HMRC app. The app can also provide useful information for those yet to complete their tax return including their National Insurance number, Unique Taxpayer Reference and any PAYE information.

Customers who are unable to pay what they owe in full, may be able to set up a payment plan, allowing them to spread the cost into manageable monthly instalments. Self Assessment customers can use self-serve Time to Pay on GOV.UK if they:

  • have filed their tax return for the 2021 to 2022 tax year
  • owe less than £30,000
  • can pay in full within 12 months

For customers who pay their current estimated tax bill via Payment on Account, the first instalment for the 2022 to 2023 tax year is due on 31 January.

A full range of payment options is listed on GOV.UK.

Anyone who files their tax return or pays any tax owed after 31 January may face a penalty.

HMRC will treat those with genuine excuses leniently, as it focuses on those who persistently fail to complete their tax returns and deliberate tax evaders. The penalties for late tax returns are:

  • an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
  • after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
  • after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
  • after 12 months, another 5% or £300 charge, whichever is greater

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, 6 months and 12 months.

Customers need to be aware of the risk of falling victim to scams. Check HMRC scams advice on GOV.UK.

Find out more about Self Assessment.

From pensioners to teenagers, HMRC reveals who files a tax return

HMRC has revealed that more pensioners filed a tax return for the 2020 to 2021 tax year compared to young people.

Overall, those aged 65 and over accounted for 16% of individuals who submitted a tax return, whereas 16 to 24 year olds made up 2.7% of total filers.

The new data is part of analysis by HMRC into the demographic data of the Self Assessment population.

The findings also show:

  • people aged 45 to 54 were the largest group of filers, accounting for 24% of all tax returns submitted
  • more than 294,000 16 to 24 year olds filed a return, making up 2.7% of total filers
  • 62% of those who submitted a return last year were men, compared to 38% who were women

The data also showed that almost 146,000 people submitted their tax return at the earliest opportunity between 6 and 11 April 2021.

More than 12 million people are expected to file a Self Assessment tax return for the 2021 to 2022 tax year. Anyone yet to submit theirs has until 31 January to complete it, pay any tax owed or set up a payment plan, or risk having to pay a penalty.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for anyone who has yet to start their tax return – there is a wide range of guidance and webinars available online for those who need a helping hand. Just search ‘Self Assessment’ on GOV.UK to make a start.“

Payments are also due on 31 January and customers still have time to decide which payment option is best for them. For customers who are due a refund, they should include their bank account details in their tax return so that if HMRC needs to repay them, it can be done quickly and securely.

Customers can now use the free and secure HMRC app to make Self Assessment payments, as well as accessing information which they need to complete their tax return, including their Unique Taxpayer Reference (UTR), National Insurance number and employment history.

Those who are unable to pay their tax bill in full can access support and advice on GOV.UK. HMRC may be able to help by arranging an affordable payment plan, known as Time to Pay. Customers should try to do this online; go to GOV.UK for more information. Alternatively, they can contact the helpline.

HMRC has a wide range of resources to help customers complete their tax return, including guidance, webinars and YouTube videos.

Customers need to be aware of the risk of scams as criminals use Self Assessment as an opportunity to commit fraud. Customers should check HMRC’s scams advice on GOV.UK.

Government announces phased mandation of Making Tax Digital for Income Tax

Self-employed individuals and landlords will have more time to prepare for Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA), following announcement by the UK Government yesterday.  

Understanding that self-employed individuals and landlords are currently facing a challenging economic environment, and the transition to MTD for ITSA represents a significant change to taxpayers and HMRC for how self-employment and property income is reported, the government is giving a longer period to prepare for MTD. The mandatory use of software is therefore being phased in from April 2026, rather than April 2024.  

From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software. Those with an income of between £30,000 and £50,000 will need to do this from April 2027. Most customers will be able to join voluntarily beforehand meaning they can eliminate common errors and save time managing their tax affairs.

The government has also announced a review into the needs of smaller businesses, and particularly those under the £30,000 income threshold. The review will consider how MTD for ITSA can be shaped to meet the needs of these smaller businesses and the best way for them to fulfil their Income Tax obligations. It will also inform the approach for any further roll out of MTD for ITSA after April 2027. 

Mandation of MTD for ITSA will not be extended to general partnerships in 2025 as previously announced. The government remains committed to introducing MTD for ITSA to partnerships in line with its vision set out in the Tax Administration Strategy.  

Victoria Atkins, Financial Secretary to the Treasury, said: “It is right to take the time to work together to maximise the benefits of Making Tax Digital for small businesses by implementing the change gradually.

“It is important to ensure this works for everyone: taxpayers, tax agents, software developers, as well as HMRC.

“Smaller businesses in particular should be able to experience the benefits of increased digitalisation of Income Tax in a way which meets their needs. That is why we are also today announcing a review to establish the best way to achieve this.”

Jim Harra, Chief Executive and First Permanent Secretary, HM Revenue and Customs, said: “HMRC remains committed to the delivery of Making Tax Digital as a critical part of our strategy for digitalising and modernising the tax system, but we want to make sure we get this right and deliver it effectively.  

“A phased approach to mandating MTD for Income Tax will allow us to work together with our partners to make sure that our self-employed and landlord customers can make the most of the opportunities this will bring.” 

The announcement relates to MTD for ITSA only. Making Tax Digital for VAT has already been implemented and is demonstrating the benefits to businesses and the tax system of digital ways of working.