Commentary

A4.173 Commencement of MTD for income tax

Administration and compliance

A4.173 Commencement of MTD for income tax

A4.173 Commencement of MTD for income tax

It was announced on 23 September 20211) that mandatory digital record keeping and quarterly reporting for income tax for businesses and landlords with annual turnover over £10,000 will begin in April 2024 (one year later than previously announced—see A4.172A). To provide certainty, this is now enshrined in the Income Tax (Digital Requirements) Regulations 20212 published the same day. Existing businesses and landlords will be required to start operating MTD from 6 April 2024 in relation to their trading and property income chargeable to income tax if their gross income (ie their turnover) from these sources for a tax year exceeds £10,000. This means keeping their records digitally for tax purposes, providing digital quarterly updates, and providing their income tax self-assessment return information to HMRC through MTD compatible software. General partnerships will not be required to join MTD for ITSA until the tax year beginning in April 2025. The date on which other types of partnership (eg LLPs, limited partnerships and partnerships including companies) will be required to join is yet to be announced. The extension of MTD for VAT

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