In a recent letter to Chartered Accountants Ireland, the new Exchequer Secretary to the Treasury clearly sets out the Labour Government’s ongoing commitment to Making Tax Digital (MTD) for income tax. Effectively, although the letter does not explicitly say so, the timetable for commencement remains unchanged and will commence for unincorporated businesses and landlords as originally planned from April 2026 for those with turnover exceeding £50,000 with the turnover over £30,000 population mandated from April 2027.
The letter highlights that 2024/25 is a critical stage in the delivery of MTD for income tax as HMRC’s focus is on developing a successful testing phase. It also clearly reiterates that this will not be achieved without continued strong collaboration between HMRC and external partners, such as Chartered Accountants Ireland.
One of the key requirements of the testing is to ensure that the right quantity and types of businesses can participate. This is one area where the government sees an important role for representative bodies like Chartered Accountants Ireland.
The Institute will be providing a full update on recent developments in MTD for income tax in a later edition of Chartered Accountants Tax News in September. We will also continue to attend HMRC MTD forum meetings and collaborate with HMRC on MTD for income tax to assist members and businesses in their preparation for this change.
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