Tertiary legislation for Making Tax Digital for Income Tax
Consultation description
From April 2024, Making Tax Digital (MTD) for Income Tax, will apply to relevant persons (unincorporated businesses and landlords) with business and/or property income over £10,000.
The Income Tax (Digital Requirements) Regulations 2021 (SI 2021 No 1076) set out the requirements that relevant persons must comply with under MTD for Income Tax. These include the use of MTD-compatible software to keep and preserve their business records (business income and expenses) digitally, send quarterly updates of their records to HMRC, and submit an end of period statement to HMRC.
The draft notices published here are made under powers conferred by these regulations. This consultation invites views on these which provide additional information on the key requirements of MTD as they relate to:
- the use of functional compatible software
- the information required when submitting a quarterly update and end of period statements
- retail sales election
The draft notices specify the proposed dataset requirement. Later in in the year we will publish guidance to explain how customers can reflect any accounting and tax adjustments that may be required to reconcile the quarterly submissions to the final taxable profits for the year.