A Practical Overview of Making Tax Digital (MTD) for Income Tax Self-Assessment in the UK

March 6, 2024

MTD is a government initiative aimed at modernising the tax system for greater efficiency and accuracy. Specifically, for Income Tax, it requires individuals to use digital tools to manage and submit their tax records.

Who Needs to Comply?

MTD for Income Tax applies to self-employed individuals, landlords, and partnerships with income exceeding £30,000.

Getting Started:

Ensure you have a digital record-keeping system compatible with MTD. Invest in software that supports MTD for Income Tax. We can help you to find suitable software at a lower price.

Utilising Compatible Software:

Choose from reputable accounting software like QuickBooks, Xero, FreeAgent, or Hammock (for rental property management). Maintain all financial records digitally and keep them updated throughout the tax year.

Quarterly Reporting:

Submit a summary of your income and expenses to HMRC every quarter using MTD-compatible software. Deadlines typically fall one month after each quarter’s end.

End-of-Year Procedures:

Finalise your year-end activities on the software, ensuring all information is accurately reported.

Stay Informed:

Stay updated on MTD developments and changes. We’re here to provide regular updates and support tailored to your needs.

By embracing MTD and adopting compatible software, you can streamline your tax processes while ensuring compliance with regulatory requirements. Let’s ensure a smooth transition and successful adherence to MTD guidelines.

Click here to get in touch with one of our tax specialists.

Gary Olding

Gary is the National Head of Tax and oversees our Tax Compliance and Medical Tax Teams. When not dealing with clients he is supervising operations, troubleshooting, and optimising workflows.

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