The New Way To Do Tax Returns: Making Tax Digital for Income Tax

Are You Ready For The New Way To Do Tax Returns?

If you earn an income from a sole trade business or from property, the way in which you complete your tax return is changing. From 6^th April 2026 anybody with a total combined income exceeding £50,000 from these two income sources will be mandated into Making Tax Digital for Income Tax (MTD for IT).

If in 2024/25 your income from sole trade or property income is less than £50,000 please do not dismiss this change, as the total qualifying turnover limit falls to £30,000 from 6^th April 2027 and £20,000 from 6^th April 2028.

This change is the biggest that HMRC have launched since the introduction of Self Assessment more than 30 years ago.

Instead of submitting 1 yearly tax return, you will now submit 4 quarterly returns through the year using a recognised software to record income and expenditure from each income source.

We’re Here To Help

There are many steps that we here at Whitings LLP can take to help to prepare you for this change, even if you will not be mandated until 2027 or 2028. Please speak to your Whitings LLP contact to find out how you will be affected and the next steps to take in preparation.

Please look out for our regular updates to Making Tax Digital for Income Tax and details of future seminars explaining the change in the way tax payers will report information to HMRC.

Disclaimer - All information in this post was correct at time of writing.