Enabling the MTD Income Tax Feature

Introduction

The Rhino MTD ITSA Feature gives you do the following: –

  • Select and manage an unlimited number of Sole Trader Businesses, UK Properties and Foreign Properties on one app.
  • The option to maintain your digital records (Income & Expenses) in Rhino or alternatively use a spreadsheet.
  • Submit your Quarterly updates
  • Trigger a Tax Calculation at any time – no need to wait until the end of the year.
  • Submit your year end figures (Bank Interest, Dividends, etc)
  • Finalise your End of Year Tax Submission.

Video Tutorial

Video Tutorial - How to enable the Rhino MTD ITSA Feature - YouTube

Video Tutorial - How to enable the Rhino MTD ITSA Feature

Step 1. Enable the MTD ITSA Feature

  • Log into your Rhino Account
  • Click on the Rhino Menu and select Your Features.
  • Scroll down and select the MTD ITSA option.

When you select this option, Rhino will check if you have upgraded your licence to enable this feature. If you have already upgraded your licence, please skip to step 3.  If you have not added ITSA to your Rhino account, the system will ask if you wish to upgrade your account – see step 2.

Step 2. Upgrading your Rhino licence

We have tried to minimise the cost to our customers by letting customers simply add the new ITSA Feature to their existing licence.  This avoids having to upgrade your licence and potentially paying for feature that you may not need.

  • When on the Licence screen, click the EDIT button
  • Select the “ Add MTSA ITSA Feature” toggle.
  • Click the “ Upgrade” button to add the feature to your account.

Once your licence has been upgraded, please go back to Step 1 – Enabling the MTD ITSA feature.

Step 3. Confirm the type of business you currently have in Rhino

You can select from any of the following:

  • Limited Company
  • Self-Employment Business
  • UK Property
  • Foreign Property

Note: If you select “Limited Company”, Rhino will prompt you to log out and to create a separate Rhino or DIY tax account for your personal use.  This is because it is not good practice to have both Limited Company information and your personal tax information in one account.

Step 4. If you currently have more than one business in Rhino

If you currently manage more than one business in Rhino, you can align each business with a category that is permitted by HMRC.

Note: Remember this is upgrading your existing Rhino account.  Most of our customers currently manage only one business in their Rhino Account.  In this case please proceed to the next step in the process.  You can enable the other types of business once you have completed the upgrade process.

Step 5. Final Step

Customers gave the option to select if they wish to categorise their expenses – see the notes on the screen.

Click on the “ Do you wish to continue?” option which will enable the “ Finish” button at the bottom of the screen.  We include this step to avoid customers clicking on the “ Finish” button by accident.

This will complete the MTD ITSA upgrade process.

Note:  This upgrade process will import a predefined list of Expenses Types that you must use when submitting your monthly MTD ITSA return.

Rhino will de-activate your existing Expense Types and replace them with the new Expenses Types.  Rhino will not delete your data – you can still report on the old Expense Types that you used prior to the MTD ITSA upgrade.

Summary

Once you have finished the upgrade process, the following changes will be made to your system.

  • New “ My Business” Menu option – where you Add and Edit your Self-Employment Business and Property Details.  Use this Menu to make your ITSA Quarterly Submissions.
  • New “ MTD ITSA” Menu option – where you will connect the App to your personal HMRC account (one-off exercise).  You can also use this menu to add other income like Bank Interest, Dividends, etc.  Our plan is to add the other Income types so that you can complete your Tax Return via this easy to use App.
  • Your existing Expense Types will have been flagged as Inactive (i.e. We do not update your existing expense entries) but we do add the new Expenses Types permitted by HMRC.