HMRC has released more details on how Making Tax Digital for Income Tax (MTD for IT) will work for sole trader and buy-to-let landlords with qualifying income over £10k.
The new framework for MTD for IT will be mandatory from 6 April 2024.
HMRC is recruiting users for the test phase.
The system will replace self assessment tax returns for anyone who qualifies for MTD for IT as they will have to submit all non-qualifying income through the Personal Tax Account (PTA) system instead.
Anyone who qualifies will be required to make quarterly submissions. The new deadline for end of year statements will be 31 January after the end of each tax year.
HMRC will use data from self assessment tax returns to calculate qualifying income in the first instance and will then contact affected taxpayers directly to inform them that they fall under the mandatory MTD for IT rules.
More information can be found here
