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Draft legislation and notices have been issued

HMRC has set out draft legislation and notices following announcements in the Autumn Statement in respect of Making Tax Digital for Income Tax.

The Income Tax (Digital Requirements)(Amendment) Regulations 2024 set out changes announced in the Autumn Statement confirming the start date for MTD for ITSA as April 2026.

From April 2026, Making Tax Digital (MTD) for Income Tax will apply to relevant persons (unincorporated businesses and landlords) with business and/or property income over £50,000. From April 2027 it will apply to those with income over £30,000. Individuals with income below £30,000 are currently not to be included in Making Tax Digital for Income Tax Self Assessment (MTD for ITSA). However, the government has stated that it will continue to monitor this threshold and make a decision on any further changes in the future.

In addition, the draft legislation also sets out, among others, exemptions from MTD where a person does not have a National Insurance number issued to them.

The draft notices provide some further details on the information required to be submitted in the quarterly updates.

Read more about the other changes announced to MTD.