An update from HMRC re Making Tax Digital

Latest as at May 2023

Despite HMRC saying that MTD had been postponed until April 2024 guess what? The latest information from HMRC is that MTD ITSA will now become applicable from April 2026.

HMRC have now published a list of software products that satisfy the MTD regime. Xero, our software of choice is on that list as being fully compliant.

The Government recognises the challenges faced by many UK businesses as the country emerges from the pandemic over the last year. In recognition of this and of stakeholder feedback, HMRC will now be introducing MTD ITSA a year later, in April 2024 instead of April 2023.

Who will be affected

The government is extending the requirement to operate Making Tax Digital (MTD) to the 4.2m taxpayers with business and/or property income over £10,000, including landlords, sole traders and partnerships, for their Income Tax obligations.

These changes will apply to businesses, self-employed individuals and landlords who are chargeable to Income Tax.

Abi are working hard to ensure that our clients are aware of this and that our systems and processes are robust and will allow our clients to be fully compliant with HMRC.

Call us on 01252 713274 or email [email protected]

© Accountancy and Business Improvement Ltd 24/02/2022