HMRC are consulting until 12 January 2024 on draft regulations which will update the Income Tax (Digital Requirements) Regulations, SI 2021/1076, which set out the various digital record-keeping and reporting requirements for Making Tax Digital for income tax self-assessment (MTD for ITSA).
One key change will be to officially update the MTD for ITSA start date to 6 April 2026 rather than the original 6 April 2024 date which currently remains on the statute book.
The income thresholds are also formally updated (in reg 21) to bring businesses with revenue of over £50,000 into scope from 6 April 2026, and those with revenue of over £30,000 from 6 April 2027.
The draft regulations also include other Autumn Statement 2023 proposals:
changes to quarterly updates, requiring year-to-date figures;
removal of end-of-period statements;
streamlined expenses for landlords with jointly owned property, with annual rather than quarterly submissions; and
exemptions from MTD for foster carers and individuals without an NI number.
The draft regulations do not appear to address the issue of multiple agents acting on behalf of the same taxpayer, although in the outcome of its MTD Small Business Review HMRC reported that ‘The government is committed to developing a solution allowing multiple agents to act on a customer’s behalf in support of MTD mandation’.
HMRC are consulting until 12 January 2024 on draft regulations which will update the Income Tax (Digital Requirements) Regulations, SI 2021/1076, which set out the various digital record-keeping and reporting requirements for Making Tax Digital for income tax self-assessment (MTD for ITSA).
One key change will be to officially update the MTD for ITSA start date to 6 April 2026 rather than the original 6 April 2024 date which currently remains on the statute book.
The income thresholds are also formally updated (in reg 21) to bring businesses with revenue of over £50,000 into scope from 6 April 2026, and those with revenue of over £30,000 from 6 April 2027.
The draft regulations also include other Autumn Statement 2023 proposals:
changes to quarterly updates, requiring year-to-date figures;
removal of end-of-period statements;
streamlined expenses for landlords with jointly owned property, with annual rather than quarterly submissions; and
exemptions from MTD for foster carers and individuals without an NI number.
The draft regulations do not appear to address the issue of multiple agents acting on behalf of the same taxpayer, although in the outcome of its MTD Small Business Review HMRC reported that ‘The government is committed to developing a solution allowing multiple agents to act on a customer’s behalf in support of MTD mandation’.
