Making Tax Digital – coming soon!

Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) is coming into effect from April 2026. We have sent direct information to our clients that we believe will fall into the thresholds where they will need to change how they work from April 2026.

What is MTD?

In terms of a bit of a recap – MTD is HMRC’s plan to modernise the UK tax system and means that instead of submitting a single tax return each year taxpayers will need to:

Keep digital records of all income and expenditure, using HMRC compliant software.
Submit four quarterly returns throughout the year.
Complete a final digital declaration that brings everything together, replacing the current annual tax return.

Who will be affected?

Clients who we currently prepare and submit a tax return for whose:

Total combined income from self-employment and/or rental income is over £50,000 from April 2026.
Total combined income as per above is over £30,000 from April 2027.
Total combined income as per above is over £20,000 from April 2028.

Please note the thresholds are based on combined annual income not profit!

If you want to discuss the implications of MTD and the information we have sent out please get in touch.

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