Change is coming for many taxpayers as HMRC rollout the next phases of Making Tax Digital (MTD). This is our dedicated MTD area which we will keep updated to support our clients, present and future, throughout the journey.
You will need to be prepared to change but we are committed to supporting you every step of the way to help you the find digital solution for you.
MTD will see a more modern, streamlined way taxpayers will interact with HMRC. It will see the mandatory need to keep digital records and submit quarterly returns using MTD compliant software for many taxpayers.
HMRC originally announced that MTD would be extended to Income Tax Self Assessment (ITSA) with effect from April 2024 where an individual’s turnover exceeded £10,000. However, in December 2022, it was announced that the introduction of MTD for ITSA was delayed until April 2026. Only those with combined turnover from business and property income exceeding £50,000 are caught by these rules from April 2026 and those with income exceeding £30,000 are caught by April 2027.
An overview of the current timeline is below to help you plan for when you and your business need to be ready:
✅2027
Self-employed businesses and landlords with annual business and/or property income above £30,000 report under MTD for Income Tax.
✅2026
Self-employed businesses and landlords with annual business and/or property income above £50,000 report under MTD for Income Tax.
✅2022
VAT registered businesses with a taxable turnover under the VAT threshold, £50,000 join MTD for VAT.
✅2019
VAT registered businesses with turnover over the VAT threshold, £85,000 join MTD for VAT.