Making Tax Digital (MTD) has been around for a while now. You will be familiar with it if you own a vat registered business, or are involved in preparing their vat returns.
The newest branch of the MTD family tree is ‘MTD for Income Tax’ . Some time ago HMRC announced that by April 2026 individuals with sole trade businesses and landlords will need to report details of income and expenditure to HMRC on a quarterly basis, instead of one annual submission through self-assessment. As with MTD for vat, the submissions must be through MTD digitally compliant software.
This change will be compulsory for those with a total income above £50,000 by April 2026 and it has been confirmed that by April 2027 the reporting threshold will reduce to £30,000.
We are aware that this feels like a big change and possibly a daunting task. However, we embrace change at One Accounting and feel this is an opportunity to support our clients through this transition, as well as opening the door to new clients.
If you are currently a self-assessment client of One Accounting, sit back and relax. We are working away on our internal plan and will contact you early in 2025 with some options for you to consider. We want to make the transition as smooth as possible for you.
If you are not currently a client of One Accounting and think you will be affected by MTD for Income tax we are happy to discuss our services with you further. Please contact cat.whitten@oneaccounting.co.uk or call us on 0131 220 0152.
