Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) is being introduced by HMRC, which they say is to modernise the way small businesses and landlords manage their tax affairs.
Timeline for MTD for ITSA
Self-employed individuals and landlords will be legally required to keep digital records and send simple quarterly updates to HMRC using compatible software
April 2026 Self-employed individuals and landlords with turnover over £50,000
April 2027 Self-employed individuals and landlords with turnover over £30,000
Some exemptions should be available for those taxpayers who are digitally excluded. From our experience of the two stages of Making Tax Digital for VAT which have already happened, exemptions were more difficult to obtain in the later stage.
If you want to put yourself in the best place possible for when the change happens, please talk to us about compatible cloud accounting packages, which can have many advantages.
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