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.