UK’s Digital Tax Regime to Cover Around 3 Million Businesses

Around 3 million businesses will need to comply with the UK’s digital tax returns regime, according to official figures released Wednesday.

The Making Tax Digital regime, or MTD, will initially cover 864,000 self-employed businesses and landlords starting next year, His Majesty’s Revenue and Customs concluded based on its 2023-24 tax returns data.

Under the MTD regime, taxpayers must keep digital records and use commercial software to submit quarterly income and expense information, and annual returns to HMRC.

• The new regime will be phased in for taxpayers, starting with those in-scope with an annual income exceeding £50,000 ($67,885) in 2024-25. ...