untied, the UK’s personal tax app, has announced that one of its users has successfully made the UK’s first Making Tax Digital for Income Tax submission powered by Open Banking data.
Making Tax Digital for Income Tax is the biggest tax change in a generation. It is a key element of the government’s vision for modernising the UK tax system and means that from April 2023, millions of businesses, self-employed people, property landlords and taxpayers -who would normally file a self-assessment tax return once a year – will be required to keep records digitally and send summaries of their income and expenditure to HMRC four times a year, in addition to an annual declaration.
To do this, they will need approved and compatible software that meets the new digital record keeping requirements. untied is the first end to end app recognised by HMRC for Making Tax Digital for Income Tax. It is supporting HMRC’s testing and deployment over the next two years ahead of full and mandated adoption from April 2023.
Most VAT registered businesses have been following the rules for MTD since 2019. From April 2023, the MTD rules will be extended and mandatory for millions of personal business owners and landlords with annual business income over £10,000.
untied was designed with open banking and Making Tax Digital in mind from the very start. It is the only tax app that automates your taxes directly from your bank transactions to your tax return. It enables users to keep digital records and provides real-time tax and national insurance calculations, with in-built optimisation. untied users who move onto the new MTD service will also find it a natural extension of untied’s existing capability and that it will be easy to transition to the new rules.
Making Tax Digital early adopter programme
untied has also launched an early adopter programme, which is available at untied.io/MTD. Those participating in the programme will enjoy close untied and HMRC support as they start using Making Tax Digital. The programme will be a chance to understand the implications of Making Tax Digital, and to provide feedback to untied and HMRC on the experience. Those taking part will benefit from existing untied functionality including streamlined tagging and tax optimisation.
Kevin Sefton, CEO at untied, commented: “This is another milestone for untied. Making Tax Digital is a completely new way of doing taxes. The combination of Making Tax Digital, Open Banking and untied’s technology will bring taxpayers simplicity, ease and confidence.
“untied is pioneering giving people more control and understanding of their taxes and we are proud to the first end to end app recognised as compatible by HMRC for Making Tax Digital. HMRC has challenged the market to use Making Tax Digital to create better products for taxpayers – and untied is pleased to be leading the way in rising to that challenge, showing leadership in this area and using our unrivalled knowledge of fintech and tax to help embed this seismic change for taxpayers.”