It will also help to reduce the tax gap by requiring businesses and individuals to:
- Keep digital records
- Use software that works with MTD
- Submit updates every quarter, bringing the tax system closer to real-time
In December 2022, HMRC announced that the start date for MTD Income Tax Self Assessment (ITSA) for sole traders and landlords that earn £50,000 or more is to be pushed back until April 2026 instead of 2024. Although this may be a relief for the taxpayers affected, it is also an opportunity to begin preparing yourselves for the process so the transition is as smooth as possible.
MTD ITSA Timeline
- MTD ITSA will be mandatory for self-employed individuals or landlords that earn £50,000 or more by April 2026.
- Self-employed individuals or landlords that earn between £30,000 and £50,000 will be required to meet the MTD ITSA requirements by April 2027.
- HRMC is in the process of reviewing the implementation of MTD ITSA for individuals that earn less than £30,000.
Bush & Co are here to help with your digital record-keeping needs, please contact us for more information by calling 01392 432525 or emailing firstname.lastname@example.org