Making Tax Digital (MTD) is the most fundamental change to the administration of the tax system for at least 20 years, however self-employed individuals and landlords will have more time to prepare for Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA).
MTD for VAT
Since April 2022, all VAT registered businesses should now be submitting their VAT returns via approved cloud software under MTD.
MTD for Income Tax Self-Assessment (ITSA)
The mandatory use of software is now being phased in from April 2026, rather than April 2024.
From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software.
Those with an income of between £30,000 and £50,000 will need to do this from April 2027.
More information is available at https://www.gov.uk/government/news/government-announces-phased-mandation-of-making-tax-digital-for-itsa
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