Essentials: Making Tax Digital for income tax

Despite a one-year delay to implementation, it is important to start preparing for Making Tax Digital for income tax self-assessment (MTD for ITSA) now that regulations have been made legislating the start date and implementing the rules, says Meg Wilson, tax writer at Croner-i

The basic requirements of Making Tax Digital for income tax self-assessment (MTD for ITSA) have been known for some time. These provide that unincorporated businesses, the self-employed and landlords (with turnover over £10,000) will be required to:

• keep income and expense records digitally;

• use MTD compatible software to submit digital quarterly updates and end of period statements; and

• submit a final declaration for each tax year.