Making Tax Digital (MTD) is set to be introduced from 6 April 2024 for Income Tax Self-Assessment. From this date, self-employed workers and landlords with an annual income above £10,000 will need to follow the new MTD rules.
The new Making Tax Digital rules for Income Tax were originally proposed for April 2023 however, it was confirmed last month that the new rules will be delayed until April 2024.
The decision to delay the implementation of MTD is due to concerns surrounding the impact of the coronavirus pandemic on small business owners. The delay will give self-employed business owners and landlords, with a business income over £10,000 per year, one more year to prepare for the digitalisation of Income Tax.
Meanwhile, General partnerships consisting of individuals that have business or property income, will not need to join MTD until the start of the 2025/26 tax year.
Confirmation on when the new rules will apply to other types of partnerships, including corporate and Limited Liability Partnerships, will be released at a later date.
More information on how Making Tax Digital will work can be found here.
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