Important update for self-employed individuals and property owners!

HMRC has issued new guidance on 16 October 2024 for working out qualifying income for Making Tax Digital for Income Tax. Here's what tax payers need to know:

Qualifying income includes:

• Self-employment income
• Property income (e.g., rental income)
• Jointly owned property income (your share of the total)

Income that doesn't count towards qualifying income

• Employment income
• Partnership income (unless it's disguised investment management fees or income-based carried interest)
• Qualifying care receipts

Residence and domicile impact on qualifying income

• If you're resident and domiciled in the UK, your foreign property and self-employment income will count towards qualifying income.
• If you're deemed domiciled in the UK, only foreign income from a year when the remittance basis applied won't count.
• If you're resident or domiciled outside the UK, only UK self-employment and property income will count.

Get started with MTD

Once you've worked out your qualifying income, sign up for Making Tax Digital for Income Tax to stay compliant. Don't miss this opportunity to streamline your tax process!

Contact us for any questions if you're unsure about how this affects you.

***Contact us to learn more.

#MakingTaxDigital #QualifyingIncome #SelfEmployment #PropertyOwner #HMRCGuidance