Government delays digital Income Tax Self Assessment for self-employed
The UK government announced this week a significant change to Making Tax Digital (MTD) for Income Tax Self Assessment. Self-employed individuals and landlords will be required to keep digital records and submit quarterly returns of income and expenditure to HMRC via accounting software. However, this will no longer be effective from April 2024 as previously announced.
There will now be a phased introduction of digital Income Tax Self Assessment for the self-employed and landlords from 2026 onwards.
New deadline for digital Income Tax Self-Assessment submissions
Sole traders and landlords with self-employed or gross rental income of more than £50,000 will be required to make quarterly submissions and keep digital records from April 2026. Sole traders and landlords with self-employed or gross rental income of more than £30,000 will be required to make quarterly submissions and keep digital records from April 2027.
Additionally, the government announced a review of the needs for smaller businesses with income below the £30,000 threshold and also when these rules will apply to partnerships.
Cloud Accounting support for small and medium-sized businesses in Scotland
Consilium Chartered Accountants provide Cloud Accounting services to SME businesses and self-employed individuals and landlords in Scotland. If you have any queries about the changes or want to chat about the benefits of digital record keeping, please contact Martin Kerr to arrange a free in-person or virtual meeting.
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