MTD for Income Tax – 01/09/2021

Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 06 April 2023.

To follow the rules for this, you’ll need to:

  • Keep digital business records

You will need to keep digital records of all your business income and expenses – you should start to keep digital records at the start of the accounting period you are signing up for.

  • Get compatible software

To keep records and send updates, it is important to make sure your software is compatible – you can follow the link here to check this.

  • Sign up

You can sign your business up for MTD for Income Tax using the link here.

  • Send business income and expenses updates

You will need to send updates to HMRC every 3 months of your business income and expenses.

  • Finalise your business income

At the end of your accounting period, you need to finalise your business income in a declaration – this is where you confirm that the updates you sent are correct and make any accounting adjustments.

  • Submit a final declaration instead of a Self-Assessment tax return

Submit your final declaration after the end of the tax year it applies to. This is where you can tell HMRC about any personal income you have or reliefs you claim.

Currently, you can choose whether or not you follow the rules however you must follow them from 06 April 2023.

Accounts Navigator Associates has experts on hand to assist with any queries regarding Making Tax Digital – if you require any assistance, please do not hesitate to contact us on 01992 714010 or at info@accountsnavigator.com.

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