Tertiary legislation for making tax digital for income tax published

HMRC has launched a consultation on the use of making tax digital (MTD) compatible software to keep and preserve business records send quarterly updates to HMRC and submit an end of period statement.

The document confirms that a business with an annual turnover below the VAT registration threshold may provide the total of all income and the total of all expenses under the quarterly update requirements.

It states that the update information to be provided in a quarterly update is dependent on the nature of the relevant person’s business:

• business with trade profits;
• businesses with property income;
• overseas property;
• furnished holiday lettings in the UK; and
• furnished holidays lettings in the European Economic Area.

Later this year HMRC intends to publish guidance to explain how any accounting and tax adjustments may be made to reconcile the quarterly submissions to the final taxable profits for the year.

Responses to the consultation should be...