Making Tax Digital Update
It has now been officially confirmed that the Making Tax Digital (MTD) Income Tax rollout will now be delayed until at least April 2026.
From April 2026 self employed individuals and landlords with gross income above £50,000 will now need to be part of the MTD system. This limit was previously £10,000 of income which means a lot of self employed individuals and landlords will no longer need to register for MTD.
From 2027 businesses (self employed and landlords) with income over £30,000 will need to register for MTD.
The income referred to above is gross income (turnover) and not profit.
Please do note that there will be no changes in respect of the basis period reforms which will go ahead as planned in the 2023-24 tax year.
We can help with the implementation of accounting software and systems, if you would like any assistance with this please get in touch. You can call on 01243 782 423 or head to our contact form.