Home Industries Majority of accounting firms see MTD for ITSA as an opportunity to take their services for landlord clients to the next level
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Majority of accounting firms see MTD for ITSA as an opportunity to take their services for landlord clients to the next level

Hammock study highlights practices ‘need to change’ to embrace the competitive advantage brought by new legislation.   

by jcp
Editorial & Advertiser disclosure
gawdo

LONDON – 03 November, 2022: Almost 60% of accountancy practices believe MTD for ITSA will provide them with greater scope to focus on consultancy services for landlords.

The upcoming change in legislation means all landlords with an income in excess of £10,000 will have to file more frequent tax returns (quarterly as opposed to once a year) and keep digital records. By having access to up-to-date records of their landlord clients’ property finances, accountants will free-up the time spent collecting spreadsheets and receipts, enabling them to focus on providing higher value consultancy.

More than half (58%) of accounting firms see upcoming digital tax reforms as an opportunity to grow their landlord client base, research from UK FinTech Hammock has shown.

While the majority (67%) of firms believe they are a strategic partner to landlord clients, more than 60% of firms believe that managing their landlord clients with their current systems and processes will be ‘unsustainable’ when Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) comes into force in April 2024. In response, more than 60% of firms are planning a ‘broad digital transformation’ project to modernise their operations.

The poll of 150 accounting firms in the UK and 150 landlords, conducted by independent research house Censuswide, uncovered the preparedness of landlords and their accountants for the digital future.

Many practices ‘struggled’ with MTD for VAT changes by reacting too slowly and will be eager to avoid a repeat performance. That’s according to Hammock founder and CEO Manoj Varsani, who is calling on firms to start engaging their landlord clients as soon as possible.

“Accounting firms clearly recognise the opportunity that MTD for ITSA presents to upgrade their business to better serve their landlord clients. It is clear that lessons have been learned – and those that move to digital services sooner rather than later will reap the most reward.”

A large segment of the market has not started planning for a transition to MTD: two-thirds of accounting firms aren’t planning on making any changes in the next three months in preparation for the MTD deadline. One in five (20%), meanwhile, said they were not aware of MTD for ITSA.

Meanwhile, a third (33%) of landlords polled said they still use spreadsheets to manage their finances, with 12% reliant on physical files, citing end of year tax returns as their single biggest headache. In addition, almost a third (30%) do not yet use an accountant.

www.gawdo.com

You may also like