Making Tax Digital (MTD) is HMRC’s plan to digitise the UK tax system. It is already in place for VAT registered businesses and will soon apply to self assessment taxpayers. It aims to make it easier for taxpayers, whether businesses or individuals, to calculate the tax they owe accurately or are due as a refund.
MTD for IT is being rolled out from April 2026 and will apply to self-employed people and property landlords. From this date, if you are an individual with an annual gross income of £50,000 or over from any trade and/or property income, you must comply with the new rules.
Those with a gross income between £30,000 to £50,000 must comply from April 2027.
In the 2024 Autumn Budget documents, HMRC also confirmed that MTD for Income Tax would apply to those with a gross annual income of £20,000 or more. They did not give a specific start date but stated it would be sometime during the current parliament.
HMRC is currently reviewing when partnerships will be mandated to join MTD for Income Tax. Depending on your respective MTD for Income Tax start date, you will have to abide by the following rules:
- Submit quarterly digital financial updates to HMRC (as opposed to annually under the current self assessment regime).
- Before 31 January each year, review and make any accounting adjustments and allowances.
- Submit a Final Declaration to confirm all your income declarations and receive a final tax calculation.
- Use only MTD compatible software which digitally links from your financial records (e.g. accounts packages or Excel spreadsheets) to HMRC’s MTD Income Tax online platform.
The introduction of MTD for IT may significantly change how you have previously handled your income and expenditure. However, DWilkinson&Company can guide you through the changes, help with your bookkeeping if required, and advise you on which MTD compatible software will be the best choice for you.
To find out more about MTD for Income Tax, contact us to arrange a Free Consultation.
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Our tax team makes sure that your tax liability is calculated correctly, taking into account all allowed exemptions and deductions. We simplify and streamline the process by using online accountancy software to accurately complete your income tax returns and calculate any tax liability that may be due, along with any payments that need to be made. We give you as much notice as possible on how much tax is due and when it needs to be paid. We will also notify you if any tax refunds are due from HMRC.
For individuals with an annual qualifying income over £20,000, Self Assessment is being replaced with Making Tax Digital (MTD) for Income Tax. Please visit our MTD for Income Tax page to learn how this will affect you.
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Corporation tax reliefs and rates change regularly. We keep up to speed with these changes to provide you with the correct guidance when considering possible exemptions, allowances, and deductions. We will review and prepare corporation tax returns and file them with HMRC and Companies House so that you have peace of mind that you are complying with the relevant authorities and you don't incur any penalties.
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If you are considering buying, and more importantly selling, investments, a second property, or another asset, our team can explain this difficult area of tax and advise you on the best ways to maximise your exemptions to reduce your tax bill.
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We are experts in all aspects of personal tax, including income, capital gains, and inheritance taxes. We know it can be challenging to understand these taxes, so we guide you through every step, creating a tax planning strategy tailored to your personal and financial circumstances. This can help you or your family pay the least amount of tax. Our friendly team will advise when payments are due and what forms must be filed and returned to keep you compliant.
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