I am adding updates here on developments in the move towards the long-delayed Making Tax Digital (MTD)
2024
HMRC is pushing taxpayers towards a 31 March or 5 April year end by 2024. I am encouraging clients who use a different accounting date to consider switching in the next tax return.
2026
Digital income tax returns
These will begin, with quarterly updates to HMRC, from April 2026. Taxpayers who are in business or who are landlords, and who have gross income over £10,000, will need to be keeping digital records (spreadsheet/app/other software), with quarterly updates going to HMRC and then a final submission.
More details to follow in due course. Many representations have been made to HMRC in recent years to say that systems, plans, and staff have not been in place to make the move to MTD for ITSA – a factor in the delays to date in bringing this in.