Making Tax Digital – delayed
The swirling rumours have now been officially confirmed and Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) has been officially delayed until 2026.
The Financial Secretary to the Treasury has released a statement regarding the adjustments that are to be made following the delay.
The minimum income reporting level has been increased to £50,000. Those earning more than £30,000 will now join the scheme in 2027. Landords and Sole Traders earning less than the £30,000 threshold will be reviewed, to see if MTD can be changed to meet smaller business needs better.
Read further details here: https://www.gov.uk/government/news/government-announces-phased-mandation-of-making-tax-digital-for-itsa
There is no clear information yet on whether the transitional year 2023/24 will still apply or whether that will also be pushed back two years, but at present it remains in the legislation and so may still affect your tax calculations for the forthcoming tax year.
If you need help with MTD, please contact Andrew Kershaw on 023 8046 1245.