The Making Tax Digital rules will apply for Income Tax Self-Assessment (ITSA) from April 2024 for landlords and unincorporated businesses with total property or business income that exceeds £10,000 a year.
You will need to use one of the approved software from this list on the HMRC’s website.
Tax returns will need to be submitted to the HMRC digitally every quarter.
The new MTD rules are being phased in. Already most VAT registered businesses need to be using MTD software.
From April 2019 if you’re VAT registered and earning above the threshold of $85,000 you need an MTD approved software
From April 2024 self-employed, with turnover above £10,000 per year.
From April 2024 Landlords with rental income above £10,000 per year will need an MTD approved software.
The new MTD service aims to increase the speed and accuracy of tax filings by removing manual data transfer and avoidable errors.
Businesses must keep digital records of VAT data. Get started with Landlord Studio.
Register for the digital tax service through your existing Government Gateway account.
Using this system you’ll need to file quarterly tax returns plus final end of year return.