22/03/2026
Dear Clients,
Important informations to read,use,as follow:
-Making Tax Digital (MTD) for Income Tax is a mandatory HMRC initiative starting April 6, 2026, requiring sole traders and landlords with qualifying income over £50,000 to keep digital records and submit quarterly updates using compatible software. It replaces annual paper reporting with a 5-step digital process, including four quarterly updates and a final declaration by Jan 31.
:-Starts April 6, 2026, for incomes over £50,000, with lower thresholds expected later.
-Who is Affected: Sole traders and property landlords registered for Self Assessment with income over the threshold.
-Digital Requirements: You must maintain digital records of income and expenses using functional compatible software (or bridging software with spreadsheets).
-Reporting Frequency: Instead of once a year, you will submit updates every quarter, followed by a final, annual declaration to HMRC.
-Deadlines: Quarterly updates must be submitted within one month of the quarter end, and the final declaration is due by January 31 following the tax year end.
-Exemptions: Exemptions are available for those for whom digital filing is not practical (e.g., age, disability, location) or for religious reasons.
-Steps to Prepare:
-Check Eligibility: Confirm if your combined gross income from self-employment and property exceeds the mandatory threshold.
-Choose Software: Select HMRC-recognized software to manage records and submit reports,
-Go Digital: Start keeping digital records of your income and expenses.
Please,feel free to get in touch with me,and we can follow all this steps together.
Thank you in advance.
Kind Regards,
Tania Accountant Ltd
FMAAT AATQB,
Xero Partner Adviser/Iris Adviser/Quickbooks Adviser/FreeAgent Advisor