The Government has postponed the implementation of Making Tax Digital for Income Tax from April 2023 to April 2024. MTD for Income Tax Self Assessment will affect more than four million self-employed people and landlords that have business or property income above £10,000.
Make Tax Digital will require you to keep digital records of income and expenses for each business, and:
- Update HMRC at least every 3 months via appropriate software.
- At the end of the tax year, finalise the taxable profit or loss for the business, making adjustments for allowances and reliefs.
- Bring together all data, including business and non-business, needed to finalise the tax position and reach the final tax liability.
- Submit final declaration and pay tax liability by 31st January
Clients can either register for MTD for Income Tax themselves, or if we act as your agent, we can register on your behalf. It is expected that there will be different deadline dates for transitioning over to this new system, based upon business accounting periods. We will be in touch with individual clients in the run-up to April 2024 to inform you of your specific transition deadline.
In the meantime, we would encourage all self-employed businesses and landlords with annual business or property income above £10,000, to move your bookkeeping over to appropriate software, such as QuickBooks, in preparation for MTD. If you would like to find out more about QuickBooks please contact Siobhan – firstname.lastname@example.org