Making Tax Digital for Income Tax
Posted on 23rd August 2024
Friday's Fortnightly Tax Tip
Did you know that Making Tax Digital for Income Tax Self Assessment requires businesses and landlords with qualifying income, to maintain digital records and update HMRC each quarter using compatible software.
Although you need to follow the requirements for Making Tax Digital for Income Tax if you are self-employed or a landlord from:
• From April 2026 if you have an annual business or property income of more than £50,000
• From April 2027 if you have an annual business or property income of more than £30,000
HMRC are introducing this new policy, as they believe that it will benefit taxpayers in the following ways:
• reducing the risk of human errors
• saving time when submitting their end-of-year tax return
• supporting wider productivity and less time managing paperwork through use of digital tools
For further information, please visit the guidance here.
For more guidance call the team at Holmes Accountancy on 01908 315716 or contact us here.
The tax tip is provided for general guidance only; further advice should be sought, for specific issues.
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