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Making Tax Digital Update

Written by Tony Shackleford on .

Under the Making Tax Digital (MTD) rules, certain ‘businesses’ will be required to record  business transactions on software and submit quarterly returns of financial data to HMRC.

Currenbtly only AVT registered business are required to comply with MTD.

From April 2026 self employed businesses withe groiss income of £50,000 or more will be required to comply with MTD. From April 2027 business with gross income of between £30,000 and £50,000 will need to comply with the rules.

The date for compliance for limited companies which are not registered for VAT, or the self employed with income of between £10,000 and £30,000, has not yet been announced.

The above rules relating to self employed are identical for individuals who have income from rented properties.

Where properties are jointly held, and an individual is notifed of only there share of the net rental income, HMRC have announced that the requirement to apply the MTD rules, will apply to net income and not gross income.