From April 2024, sole traders and unincorporated landlords with business or property income of £10,000 or more, will be required to join Making Tax Digital (MTD).
This means that those affected must use MTD-compliant digital software (such as Xero) to submit quarterly summaries of their business’s income and expenses. In return, these businesses will receive a tax estimate from HMRC based on the details provided each quarter.
As a result, the self-assessment tax return will become a thing of the past.
What are the exemptions, deadlines and penalties for MTD? And what can you do to prepare now?