On 19 December 2022, the government announced the extension of Making Tax Digital (MTD) for Income Tax (individuals) from April 2024 to April 2026 (except general partnerships). In this article, a brief of the changes in MTD for ITSA will be explained.
MTD for ITSA Extension
The qualifying income refers to your gross self-employment income or rental property income or both in together. Gross income means the total income before the deduction of expenses.
Example 1: You have gross income of £30,000 from self-employed and property rental income of £25,000, so the total income is £55,000. Here, you are subject to MTD for ITSA from April 2026 as having total qualifying income more than £55,000 from both self-employed and property rental.
MTD for Jointly Owned Property:
You may have property rental income from jointly owned property and in this case, your share of the property income will count as your qualifying income rather than the total income of the jointly owned property.
Example 2: You have jointly owned property income of £50,000 (equal share to you and your partner, £25,000 each). You also don’t have any income from self-employed. Here, you are not subject to MTD for ITSA from April 2027 as having less than £30,000 income per individual.
Other matters of MTD for ITSA:
Here to Help on Your MTD for ITSA?
At The Stan Lee, we have MTD compatible software for you and pleased to support confidently. For further information and about your MTD for ITSA, please get in touch with one of the friendly team and let’s find out how we can help you.
Get Free Initial Consultation without Any Obligations!
Muhammad Solaiman FCCA [also CILEX Practitioner (ACCA-Probate)] is a Chartered Certified Accountant and the founder partner at Stan Lee Accountancy Ltd (T/A: The Stan Lee), an ACCA registered…
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