There has been a lot of publication of the new changes to the tax system, mostly by HMRC. HMRC are moving forward with their new digital tax system, Making Tax Digital (MTD), and from 6 April it will be directly affect any self-employed individual or those with rental income.
MTD will require any self-employed individual, or those with rental income, that exceed the income threshold below to register by 6 April 2026 and make quarterly submissions though digital software.
The qualifying income thresholds are as follows, should any individual exceed these they must comply with MTD.
- For £50,000 income for 2024/25 MTD is required from 6 April 2026
- For £30,000 income for 2025/26 MTD is required from 6 April 2027
- At present £20,000 income for 2026/27 would require MTD, however the Government is set to introduce legislation to lower the qualifying income threshold.
It is important to note that by income HMRC means your total sales or rent received, and not your profit for the year.
If you’re not sure if you aer going to be included in MTD from 6 April 2026, or would like assistance to get ready, please get in touch with us.
