Making Tax Digital income tax self-assessment update

The government has announced a delay of a year to the start of Making Tax Digital (MTD) for income tax self-assessment to 6 April 2024.

MTD is the initial phase in the government’s plan of the making a modern tax service which is digital. MTD requires qualifying businesses to keep digital VAT records and submit VAT Returns digitally which is implemented via MTD compatible software.

Making Tax Digital timeline

MTD came into force in April 2019 for businesses with a taxable turnover above the VAT threshold, currently at £85,000.

Then, from April 2022 there was an extension to the legislation for smaller VAT registered owners.

With businesses having to adapt quickly over the last year to incorporate digital communication within their business strategy, many will already be well versed in managing tax and financial accounts digitally. However, many businesses will also have been affected by the pandemic and so this delay to the introduction of MTD for income tax self-assessment is intended to provide more time for people to prepare.

General partnerships will be required to join MTD for income tax self-assessment for the April 2025 tax year.

Tax return support

Read our blog help and support for making tax digital for further resources.

 Our team of accountants in Oxted, Surrey are also on hand to help you navigate personal tax returns including Self-Assessment Tax.