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Making Tax Digital - Draft Legislation

12 January, 2024

The ATT has responded to the recent HMRC consultation on draft legislation for Making Tax Digital for Income Tax Self Assessment (MTD for ITSA), which was published on 7 December.

The draft legislation amends the mandation dates for MTD for ITSA to 6 April 2026 for self-employed individuals and landlords with an income of more than £50,000, and to 6 April 2027 for those with an income of between £30,000 and £50,000. It is also intended to enact the changes announced by the outcome of HMRC's Small Business Review.

The key points from our response include:

  • Further clarity is needed regarding the level of detail required in digital records.
  • HMRC's expectations for 'digital links' are still unclear.
  • Reporting requirements for Furnished Holiday Lets may be difficult to comply with.
  • The regulations dealing with quarterly updates may need revising - in particular the implications of making a calendar quarters election, and how aspects of cumulative updates will work.

Further explanation of the above, along with other concerns we raised relating to the draft legislation, can be found in our full submission

You can keep up to speed via our dedicated MTD for ITSA pages