This is a reminder to everyone who receives income from self-employment or property (or both) and usually fills out a Self-Assessment tax return, that Making Tax Digital (MTD) is set to become mandatory, in phases, from 6 April 2026 next year.
Here are the dates for MTD:
– April 2026, if your qualifying income is over £50,000 in the 2024 to 2025 tax year.
– April 2027, if your qualifying income is over £30,000 in the 2025 to 2026 tax year.
– April 2028, if your qualifying income is over £20,000 in the 2026 to 2027 tax year (the government has set out plans to introduce legislation to lower the qualifying income threshold to this level).
When your turn comes, you must source compatible software, authorise it and sign up for MTD. However, here at Lewis & Co, we would recommend that, even if you haven’t reached the qualifying income of £50,000, it is worth considering moving onto MTD, simply so you are ready when it does apply to you.
HMRC has stated ‘once you start using MTD for Income Tax, new rules around late submissions and payments will apply – including updated penalties’.
The current regulations do not cover partnerships but they are likely to also be included in the future.
Please do get in touch if you’d like to advice about compatible software for MTD. If you’ve got any questions at all, please call our team on: 01892 513515 or email: info@lewisandco.biz