At the end of December 2022 the HMRC announced new rules around Making Tax Digital. These will apply to all sole traders and landlords with an income above a certain level and are a new way of reporting property and self-employment income to HMRC. Taxpayers will have to keep digital records and send Income Tax updates on a quarterly basis to HMRC.
HMRC had previously announced that MTD would apply as from April 2024 but in a surprise announcement in December HMRC have said that MTD will be delayed until April 2026 at the earliest. Furthermore they are increasing the initial turnover threshold from £10,000 to £50,000, so fewer people will be affected by the new April 2026 deadline.
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