Self-Assessment and MTD IT

This section explains how Self-Assessment and Making Tax Digital for Income Tax (MTD IT) interact within Smart Tasks.

Self-Assessment and Making Tax Digital for Income Tax (MTD IT) are linked within the same service.

To create a standard Self-Assessment tax return, the following minimum information is required:

- Tax return required set to On

- Trading start date

If no MTD IT start date is entered, the client remains on the standard Self-Assessment workflow, and annual tax return tasks are generated. If an MTD IT start date is entered, the workflow changes. The annual Self-Assessment tax return is replaced by a Final Declaration, and MTD IT quarterly update tasks are introduced.

Quarterly updates are generated based on the MTD IT start date and can follow either tax year quarters or calendar quarters, depending on the option selected.

For a new client who is already within MTD IT, all of the following are required:

- Tax return required set to On

- Trading start date

- MTD IT start date

If the MTD IT start date is not entered, no MTD IT tasks will be created and the client will remain on the standard Self-Assessment cycle. If Smart Tasks are not enabled, MTD IT information can be recorded, but tasks must be managed manually.