Making Tax Digital

Making Tax Digital for Income Tax

 

Making Tax Digital for Income Tax (MTD for IT) is the next phase of the government’s plan to digitise the UK tax system. It will apply to self-employed people and landlords.

 

The Government has confirmed the following thresholds and deadlines in connection with the rollout of the MTD for IT regulations:

 

  • Income over £50,000 – April 2026

  • Income over £30,000 – April 2027

  • Income over £20,000 – TBC, but during the term of the current parliament

 

HMRC has yet to confirm when partnerships and companies will have to start complying with MTD.

 

Absolute is developing the MTD for Income Tax Filer. This bridging software will let users link their Excel spreadsheets, containing their income and expenses, directly to HMRC’s online MTD for IT portal to enable them to comply with the new regulations.

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Absolute’s MTD for Income Tax Filer bridging software will help you and your clients comply with the new regulations. Our software already covers the different types of businesses mentioned in the guidance. It is ideal for those looking for various solutions relevant to their clients, not a ‘one size fits all’ product.

 

The interest we have received to date about our MTD Income Tax Filer software has been phenomenal, which is largely down to the success of our Excel VAT Filer bridging software. To date, our Excel VAT Filer has been used to file around 5% of all VAT returns in the UK since MTD for VAT became mandatory. We are anticipating a similar take up for our MTD for Income Tax product.

 

For more information about MTD for IT, please download our free guide.

 

There has been a lot of misinformation concerning MTD and the long-term use of bridging software. HMRC has categorically stated it does not have any plans to stop the use of spreadsheets with MTD bridging software. This applies to both MTD for VAT and MTD for IT.

 

Absolute’s stance is to provide our customers with the truth, and we will keep you up to date with any further official announcements. We will continue to listen to your needs and will take care to help you make the transition to MTD for IT as simple as possible.

 

If you have any questions concerning the Government’s MTD for IT timetable, the criteria for complying with MTD for and how our software is being developed, please don’t hesitate to get in touch by email.

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