Sage, a specialist in accounting, financial, HR, and payroll technology for SMEs, has launched a series of new tools to help accountants support the 4.2 million sole traders and landlords impacted by one of the UK’s biggest tax changes.
MTD for ITSA will apply to unincorporated sole traders and landlords from April 2024, if their annual business or property income exceeds £10k in a tax year and to be compliant, businesses and property owners will need to make records and income tax self-assessment submissions digital using compatible software.
92 per cent of SMEs use the service of an accountant, with 49 per cent using their services at least weekly, according to Sage research. With the demand on accountancy and tax services set to increase with the introduction of MTD for ITSA, accountancy practices need to properly prepare to support their clients through the changes.
Sage Accounting Individual aims to support businesses with the simplest of tax needs. The new, “easy to use and affordable” solution has been tailored to the needs of sole traders and the self-employed with the simplest tax requirements.
Sage will also be supporting landlords via a new strategic partnership with Hammock, the accounting platform for landlords to manage rental property transactions, and will offer a dedicated solution to the 1.3m UK property owners impacted by MTD for ITSA.
Manoj Varsani MBE, CEO and founder, Hammock, commented: “Sage has an unrivalled history of supporting accountants with all their compliance needs and, through this partnership, we are integrating Hammock’s services to provide the complete solution to support practices with landlord clients.
“Accountants are landlords’ closest ally in the management of finances and compliance. This partnership allows accountants to add a dedicated offering to landlords, enhancing real-time collaboration and unlocking access to deep insights into the clients’ property finances.”
Andrew Dick of Chartered Accountants, G W Dick & Co, added:“It’s rare a company listens hard to its customers and acts on it. Thankfully, Sage understood the brief and what accountants need to make this implementation successful.
“There’s a need for an end-to-end solution that caters to all client types to ensure that practices are not approaching this in a fragmented way, (particularly with Making Tax Digital for Income Tax coming).”
Credit: Bdaily
