Are you a self-employed individual running your own business or a landlord with annual business or property income above £30,000? If so, it's crucial to be aware of the upcoming changes to the Self-Assessment Income Tax return process. The government's Making Tax Digital (MTD) initiative will require you to keep digital records and make online real-time returns throughout the tax year.
Starting from April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to maintain digital records and provide quarterly updates on their income and expenditure to HMRC using MTD-compatible software. If your income lies between £30,000 and £50,000, take note, as these requirements will apply to you from April 2027. The great news? Most of our valued clients will have the opportunity to adopt this system voluntarily even before these dates. This proactive approach can help you iron out common mistakes and streamline your tax responsibilities.
This might seem like a departure from the classic annual Self-Assessment tax return, and indeed, it is. With the introduction of these real-time returns, including four quarterly updates throughout the fiscal year, there's an understandable sentiment of, "Well, that's a bit more paperwork!" But worry not!
To ease this transition and ensure you're compliant, consider using MTD-compatible software platforms, such as QuickBooks or Hammock. These tools can significantly simplify the record-keeping process, helping you stay on top of your business operations. And here's the cherry on top: we're offering complimentary setup assistance for our clients looking to move to these platforms.
For more guidance on these upcoming changes or if you have any other queries, do shoot us an email at [email protected]. We're here to support you every step of the way!
