AI Making Tax Digital

The Government has announced that Making Tax Digital for income tax self assessment (MTD ITSA) has been postponed again until April 2024.

HMRC aims to obligate individuals and businesses to keep digital financial records and submit tax returns via accounting software in order to modernize its tax administration, and make it easier for taxpayers to get their payments right.

VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000 are already filing their VAT returns digitally. Self-employed business owners and landlords with annual business or property income above £10,000 had been due to do the same from April 2023. The Government has postponed this date further to allow these people more time to prepare for the changes following the Coronavirus pandemic.

The Making Tax Digital for corporation tax is still due to begin in 2026.

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