10/05/2024
HMRC publish more details of MTD for income tax reports
Making Tax Digital (MTD) for Income Tax will apply to self-employed individuals and landlords with income over £50,000 from April 2026 and the threshold will then reduce to £30,000 from April 2027.
The government have now confirmed that the four quarterly returns that will need to be submitted will report cumulative income and expenses and that there will no longer be an end of period statement. HMRC have published the detailed income and expenditure headings that need to be reported and have also confirmed that those businesses with turnover below the VAT registration threshold will be able to merely submit three line accounts, i.e. total sales, total expenses ad profit or loss for the period.
There remain a number of issues to be resolved before the new reporting obligations commence and we will be able to support with any changes needed to your accounting systems to ensure compliance.
Should you have any questions concerning the above, or our personal tax service, please call 023 8046 1245 or email Andrew Kershaw.
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