Last updated: 02 Sep 2024 03:15 Posted in: AIA
In a recent letter received by the Association of International Accountants (AIA), the new Exchequer Secretary to the Treasury sets out the Labour Government’s ongoing commitment to Making Tax Digital (MTD) for Income Tax.
The letter highlights that MTD for Income Tax is in a critical stage of its delivery and HMRC’s focus is on developing a successful testing phase to ensure successful delivery of the service by 2026 as planned.
It also clearly expresses that this will not be achieved without a continued strong collaboration between HMRC and external partners, such as AIA and other professional bodies.
One of the key requirements of the testing is to ensure that the right quantity and types of businesses can participate and this is one area where the government sees an important role for representative bodies including AIA.
The timetable is expected to remain unchanged. From April 2026, MTD for Income Tax will be mandated for self-employed businesses and landlords with turnover above £50,000. From April 2027, MTD for Income Tax will be mandated for self-employed businesses and landlords with business turnover above £30,000.
AIA is partnering with HMRC to provide updates on developments in MTD for income tax with an upcoming webinar on 16 September 2024. AIA will also continue to collaborate with HMRC on MTD for Income Tax more widely to assist members and businesses in their preparation for this important change.
