Seismic changes to the tax system are on the way, and we’re encouraging all taxpayers to plan ahead.
From April 2026, sole traders and landlords with a gross turnover of £50,000 and above will need to sign up for Making Tax Digital (MTD) with HMRC and file their income and expenditure on a quarterly basis using compatible digital software.
HMRC will use the figures reported on your 2024/25 Income Tax return to determine whether you need to comply from 6 April 2026. That’s why it’s so important to complete your 2024/25 tax return as soon as possible – giving you time to prepare for the new requirements.
Our Client Manager, Jenna Woolley, explains:
“You don’t have to wait until 2026 to get started. Eligible taxpayers are already being invited to sign up to HMRC’s testing phase, which can really help you feel more confident about the changes. By keeping digital records throughout the year, you can spread the workload more evenly, move closer to real-time reporting, and avoid the last-minute rush.”
Jenna adds:
“Making Tax Digital for Income Tax also provides an opportunity to work more closely with advisers, so you can benefit from real-time, proactive planning and advice.”
HMRC has provided a list of approved MTD-compatible software which is being constantly updated. To find out more, visit here.
Jenna Wooley, Client Manager