UK Tax Authority Clarifies Income Rules for Digital Tax Regime

The UK tax authority Monday clarified which income sources will qualify under the new digital tax filing regime launching next year.

Businesses that join Making Tax Digital may opt out if their total income falls below the regime’s qualifying threshold for three consecutive tax years, according to updated guidance from His Majesty’s Revenue and Customs issued Monday.

• Income that has ceased since the submission of a business’s last tax return will still count toward qualifying income if the taxpayer continues to receive income from other self-employment or property sources, according to the HMRC guidance.
• Under MTD, taxpayers with ...