20/10/2025
Making Tax Digital is coming - J&J Accountants are ready, are you?
Making Tax Digital for Income Tax (MTDIT) will become law from 1/4/2026 for many individuals who are sole traders and property owners, and represents a transformational shake up in the reporting system.
The Government are phasing in MTDIT starting with individuals and property owners with income of £50,000 from 1/4/2026, then from 1/4/2027 this threshold moves to £30,000, and £20,000 from 1/4/2028.
So what is making tax digital and how will it affect you? Making Tax Digital is the HMRC plan to digitise the tax system for Income Tax Self Assessments—both for businesses and individuals. Its purpose is to make tax returns simpler and more efficient for everyone. Rather than one Self-Assessment a year, HMRC will require quarterly returns via digital software, followed by a final return at the end of the year.
What do you need to do? The qualifying year for the 1/4/2026 sign up is year ending 5/4/2025 therefore if your gross income (property and self-employment) is £50,000 or over you will be required to register for MTDIT. Your accountant should inform you of this, and HMRC will send you a letter to inform you of your obligation to register. You will need to find some compliant digital software, and register for MTDIT with HMRC by 1/4/2026. After 1/4/2026 your first return will be for the period 1/4/2026 - 30/6/2026 and this will be required to be digitally filed by 7/8/2026.
J&J Accountants are ready to assist all our clients with this new accounting and reporting regime, and our aim is to make this transition as easy and smooth as possible. We are here to offer support and guidance to existing clients as well as other individuals who are seeking help. Following the November Budget Update we will be releasing further information on our range of support packages as well as recommended software packages. Please call our team now if you need help or advice on 07793 824995.
Check the link below for important dates, and if you need to need to sign up to MTDIT.
Check the MTD for Income Tax dates sole traders and landlords need - get ready to record and report income and expenses the new way