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 – April 2028
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.
The team at Absolute are delighted to announce that, with the launch of our new MTD Excel Income Tax Filer software, we are ideally placed to help advisers and taxpayers meet all MTD requirements with no need for people to change from their existing, familiar Excel spreadsheets for recording data. Built on the success of our highly popular Excel VAT Filer, the Excel Income Tax Filer uses bridging software technology to seamlessly file income tax data directly to HMRC’s MTD for Income Tax portal.
The Excel Income Tax Filer has received its production credentials approval from HMRC, which can be found here, which is a testament to the Revenue’s acceptance of and long-term support for high quality bridging software. We are currently happy to work with people on (or who would like to join) HMRC’s MTD for Income Tax beta testing programme. There will be no charge for using our software during the beta testing period. The pricing for our quarterly software will start from £40+VAT for a tax year, covers up to 5 x national insurance numbers and will include free and unlimited technical support. Full details can be found HERE
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.