Whilst we put together processes to prepare for Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) in April 2024 – HMRC has revealed that after a recent review, the programme to digitise the UK tax system will be pushed back to 2026.
MTD for ITSA will apply to all individuals self-employed or a landlord with an annual income from a business or property of more than £50,000.
In April 2027 however, this will change and if you have an annual business or property income of more than £30,000, you would be required to digitalise.
VAT-registered businesses have been required to keep digital VAT records and send returns using MTD-compatible software already, since April 2022.
What you can do to prepare
So, now there is a bit more scope for you to start preparing to digitalise as sole traders and landlords, early adoption of the MTD-software will ease any pressures and stresses on meeting the quarterly deadlines.
Taking a digital approach to manage your business’s finances will give you a real-time cashflow position, which enables you to make better-informed decisions.
As a firm we have software available which will assist and in the next few months we will keep you updated with options available to you to enable pre-adoption of the software and ensuring MTD compliance.