We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
What businesses need to know
Digitalisation of tax is a huge focus for the UK government.
Making Tax Digital (MTD) for VAT is already running and demonstrating the benefits of digital working for many businesses.
The next milestone will be rolling out MTD for Income Tax Self Assessment (ITSA) for self-employed individuals and landlords.
MTD for ITSA was previously due to be introduced from 6 April 2024 for sole traders and landlords with an annual qualifying income over £10,000.
HMRC has recognised this requires a significant change in working while we’re in a challenging economic climate and has decided to change the mandation threshold as well as shift to a phased roll-out from 2026.
In this article Sage cover all the updates you need to know as well as who can get involved in early testing over the next year.