Latest making-tax-digital

We’re explaining Making Tax Digital for Income Tax for sole traders and landlords ahead of its introduction in 2026. You will have seen lots of information online about Making Tax Digital for Income Tax. What does it actually mean, what will you need to do differently and what will stay the same? Read on to…

In the 2025 Autumn Budget, the government confirmed that taxpayers using profit averaging, such as farmers and creatives, will not be required to enter MTD for Income Tax Self Assessment (MTD for ITSA) in April 2026. Instead, this group has been pushed back to April 2027, giving these businesses additional time before digital quarterly reporting…

This year’s Budget included some big tax headlines, but there were also a few quieter changes that matter if you’re getting ready for Making Tax Digital (MTD) for Income Tax. Here’s a quick, no-jargon update on what’s changed and what it means for you.   1 – No Penalties for Late Quarterly Updates in 2026/27…

From April 2026, Making Tax Digital for Income Tax (MTD for IT) becomes mandatory for self-employed individuals and landlords earning over £50,000 in qualifying income. If you fall into this category, start preparing now, digital record-keeping and quarterly submissions are on the way.   What is Qualifying Income? Qualifying income is the gross income you…

Running a business is exciting, but let’s be honest, keeping track of the numbers isn’t usually the part you enjoy the most. Receipts pile up, spreadsheets go missing and tax deadlines creep up faster than expected. That’s where cloud accounting can make a real difference.   Instead of relying on paper records or outdated systems,…

If you have filed your 2024/25 tax return ahead of 31 August 2025, HMRC are now starting to send out the first batch of letters to those who need to comply with MTD from April 2026 based on what was entered on there tax return. If you have received a letter and are still unsure…

Making Tax Digital for Income Tax comes into effect from 26/27 for sole traders and landlords with qualifying income of £50,000 or greater. The table below shows how the threshold will lower in subsequent years: Tax Year MTD for IT Income Threshold 26/27 £50,000 27/28 £30,000 28/29 £20,000   Sole traders and landlords subject to…

On Tuesday 7th October 2025, I attended the 2025 Xero UK Roadshow for accountants and bookkeepers of small businesses, which was held at Tobacco Docks, London.   The day started with time to network with other accountants and bookkeepers in attendance and a chance to look around the exhibition and speak to different app partners…

On Thursday 25th September 2025, Dan Walker (St Neots) and I (Ely) attended the Making Tax Digital for Income Tax event for Strategic Partners. The event was held at the Xero office in Milton Keynes.   HMRC were in attendance and provided an update on their readiness and the bumps in the road we have…

HMRC are beginning the process of phasing in taxpayers who are self-employed or with income from property over a number of years, so you may be wondering ‘When Will It Affect Me?’.   The limits will be calculated from your latest Self Assessment Tax Return so the current tax year ending 5th April 2025! If…