Making tax digital quarterly statements to be cumulative

The Income Tax (Digital Requirements) (Amendment) Regulations SI 2024/167 confirm that making tax digital (MTD) for income tax will start from April 2026 instead of April 2024 and the minimum income threshold required to be within the scope of the legislation will be £50 000 from April 2026 and £30 000 from April 2027 (first announced in December 2022).

The regulations also remove the requirement for an annual report of income and expenditure and make quarterly updates cumulative. The reporting dates will be aligned to those for VAT – the seventh day of the following month. In addition individuals providing qualifying care and taxpayers without a National Insurance number will be exempt from the new system.

A separate update notice sets out the information that must be included in the quarterly updates. It also confirms that traders with turnover below the VAT threshold can...