Making Tax Digital (MTD) is an initiative by the UK government to make the tax system more efficient by using digital technology. It has introduced changes to how businesses and individuals report their taxes

 MTD for Income Tax Self-Assessment (ITSA):

Starting from 6 April 2026, MTD for ITSA will become mandatory for individuals registered for Self Assessment who have income from self-employment or property, or both, and whose total gross income exceeds £50,000 in the 2024 to 2025 tax year.

For those with gross income between £30,000 and £50,000, MTD for ITSA will be mandatory from 6 April 2027

 Key Requirements:

• Digital Record-Keeping: Taxpayers must maintain digital records of all business and property income and expenses.

• Quarterly Updates: Submit quarterly updates to HMRC detailing income and expenses.

• End-of-Period Statement: Provide an end-of-period statement summarising the tax position for the year.

• Final Declaration: Submit a final declaration to confirm the accuracy of the information provided.

 It’s important to note that MTD for ITSA does not currently apply to partnerships, including Limited Liability Partnerships (LLPs), or companies. The government has not yet specified when MTD might be extended to Corporation Tax.

 We understand that this will be a significant change, and we are actively working on plans to ensure all relevant clients are set up and ready for MTD. Please stay tuned to our website and emails for any updates.

If you need further advice, don’t hesitate to reach out to us.