MTD Final Return to HMRC

MTD for income tax currently impacts  on those individuals who have total gross income in excess of £50,000 per tax year from self employment and rental income. By April 2028 the threshold will be reduced to £20,000 per tax year.

Those individuals caught by the new system, are required to submit 4 quarterly returns for each self employment and a 4 quarterly returns for total reNtal income to HMRC. The self employed returns will disclose gross income and totaL expenses. The returns for rental properties disclose 3 figures, gross rent received, expenses and mortgage interest paid.

The final MTD return effectively replaces the self0-assessment tax return. The MTD return should be pre-populated with figures already held by HMRC. This means it should already hold employment income, interest received and the cumulative totals for MTD quarterly returns. Tax payers and their agents can amend the figures on the MTD return, prior to submitting the return to HMRC.