MTD for Income Tax — less than a year to go

MTD for Income Tax will help sole traders and landlords stay on top of their tax affairs by streamlining the end of year filing process.

Taxpayer will need to use MTD compatible software to keep up to date digital records and send closer to real-time updates of income and expenses to HMRC each quarter.

These changes will help customers to:

• pay the right amount of tax

• reduce the chance of making errors

• have a clear view of their finances

• plan for the future

They will then need to submit their end of year tax return. But, as they have already submitted a lot of their information in the quarterly updates, it will be easier for taxpayers to manage their tax affairs in a more straightforward manner.

Making Tax Digital thresholds

MTD for Income Tax will be introduced in phases from April 2026.

Taxpayers with gross income from self-employment and property over:

• £50,000 will need to use MTD for Income Tax from April‌‌‌ 2026

• £30,000 will need to use MTD for Income Tax from April‌‌‌ 2027

As announced in the Spring Statement, taxpayers who have gross income from self-employment and property that totals over £20,000, will now also need to use MTD for Income Tax from April 2028.

For further guidance and advise contact Amin & Co Accountants or call at 0161 224 3510