IMPORTANT FOR ALL CLIENTS OVER £50,000 TURNOVER
 

Just a quick message to update you on the upcoming changes to HMRC and Filing your returns.

The MTD (Making Tax Digital) income tax timeline is phased.

From April 2026, MTD for income tax will apply to self-employed individuals and landlords with qualifying income (which is your turnover, not profit) over £50,000.

From April 2027, it will apply to those with income (which is your turnover, not profit) over £30,000.

From April 2028, it will apply to those with income (which is your turnover, not profit) over £20,000.

 

 

 

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If your combined self-employment and property income exceeds the threshold, you will need to comply.
Planning ahead before your start date is essential. (WE WILL BE IN CONTACT TO RUN THROUGH WHAT IS NEEDED).
Your UTR and existing Self-Assessment registration will continue, but the reporting method will change.
Late submissions under MTD can trigger penalty points and financial penalties under HMRC’s points-based system.
Quarterly updates are reporting requirements, not payment deadlines. Payment dates remain aligned with Self-
Assessment rules unless HMRC changes them.

Understanding MTD for income tax
Making Tax Digital for income tax is a major change to how Self-Assessment is reported to HMRC.
Instead of submitting one annual Self-Assessment return, eligible taxpayers will need to:
1. Keep digital records
2.  Use HMRC approved software (THIS IS NOT NECESSARY – WE HAVE A BRIDGING SOFTWARE).
3. Submit quarterly updates
4. Submit an end of period statement
5. Complete a final declaration

 

Unfortunately, due to having to make five submissions a year instead of one, there will be a rise in cost. We have
tried to keep this as low as possible. We have purchased a bridging package – this means that you will not have to purchase a separate software package (Xero cost being approximately £230 Quickbooks being approximately £206). Which means you would also have to enter your own data. Prices remain the same for the financial year

6 April 2025/5 April 2026 at £300. The price for existing customers will be £450 for the financial year 2026/2027 (this is only for above £50,000 turnover, at this point).

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Please feel free to contact Caroline on 07974 889727 for more information.