MTD for Income Tax

On 30 October 2024, the Government confirmed its intention to roll out Making Tax Digital for Income Tax (MTD for IT) to the self-employed and landlords. It also announced the lower income limit and when this will come into effect. The income thresholds and deadline for complying with MTD for IT are:

• Income over £50,000 – April 2026
• Income over £30,000 – April 2027
• Income over £20,000 – TBC, but during the term of the current parliament

HMRC has yet to confirm when partnerships and companies will have to start complying with MTD.

For more information about the latest MTD for IT changes please download our MTD for IT Guide.

At Absolute, we are pressing ahead with the development of our MTD Income Tax Filer bridging software so that this will be ready to help you and your clients as and when you want to use it, potentially well ahead of the new deadline. Our software already covers the different types of businesses mentioned in the guidance and is ideal for those looking for various solutions relevant to their clients, not a ‘one size fits all’ product.

The interest we have received to date about our MTD Income Tax Filer software has been phenomenal, which is largely due to the success of our Excel VAT Filer bridging software. To date, our VAT Filer has been used to file around 5% of all VAT returns in the UK since MTD for VAT became mandatory. We are anticipating a similar take up for our MTD for Income Tax product.

HMRC have confirmed that bridging software will continue to be a long-term viable option for complying with MTD for IT as well as MTD for VAT. For more information you can download our free MTD Bridging Software Factsheet.

If you would like to know more about our MTD for Income Tax Filer or take part in future beta tests of the software, please email Dave Frost at Absolute at dave@absolutetax.co.uk.