03/09/2025
Are you ready for MTD for Income Tax?
From April next year, those with qualifying income in excess of £50k in the 24/25 tax year will need to complete digital quarterly returns and from April 2027; those earning in excess of £30k in the 25/26 tax year. With the threshold hinted to continue lower in future years.
Who is this legislation aimed at?
Landlords and Sole Traders. There is no roadmap currently to include either partnerships or limited companies.
What is qualifying income?
I'd highly recommend reading this article (https://www.gov.uk/guidance/work-out-your-qualifying-income-for-making-tax-digital-for-income-tax) but for most, this would be made up of the sum of the gross income (before expenses are taken into account) earned in self-employment and from property.
There are more complex rules surrounding trusts, and if you're not a UK tax resident, so if you are in receipt of income other than through PAYE or a partnership, that is subject to income tax, check the link to see if it will count towards the threshold.
