Draft legislation: Income Tax (Digital Requirements)(Amendment) Regulations 2024

From April 2026, Making Tax Digital (MTD) for Income Tax, will apply to relevant persons (unincorporated businesses and landlords) with business and/or property income over £50,000 followed by those with income over £30,000 from April 2027.

The Income Tax (Digital Requirements) Regulations 2021 (SI 2021 No 1076) set out the requirements that relevant persons must comply with under MTD for Income Tax. These include the use of MTD-compatible software to keep and preserve their business records (business income and expenses) digitally, send quarterly updates of their records to HMRC, and submit an end of period statement to HMRC.

The draft regulations published here amend the 2021 regulations and are published with supporting draft notices. These jointly reflect recent government decisions, some of which were announced at Autumn Statement 2023 in the Outcome of the MTD Small Business Review.

These changes include:

• revised MTD mandation date and threshold
• improving the design of quarterly updates
• simplifying processes by removing End of Period statements
• introducing easements for landlords with jointly owned property
• exempting specific groups from MTD requirements

We expect tax and accounting bodies to be interested in this consultation.

On this page, you can read:

• draft legislation
• draft notices made under regulations 3, 6, and 8 of the Income Tax (Digital Requirements) Regulations 2021 (SI 2021/1076)