MTD for Income Tax: Key Updates & How We’ll Support You

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Published: 24/02/2025 By Michelle Tompson

At turpin barker armstrong we are committed to keeping our clients up to date with the latest tax regulations. One major change on the horizon is the rollout of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA), which will affect many self-employed individuals and landlords. Here’s what you need to know and how we’ll help you navigate the transition smoothly.

Key Updates for MTD for Income Tax

  1. Who is Affected?
     From April 2026, self-employed individuals and landlords earning over £50,000 annually will be required to comply with MTD for ITSA. Those earning between £30,000 and £50,000 will need to join the scheme from April 2027.
  2. Quarterly Reporting Requirements
     Instead of submitting one annual Self-Assessment tax return, affected taxpayers will need to provide HMRC with quarterly updates of their income and expenses using MTD-compliant software.
  3. End-of-Period Finalisation
     After the end of the tax year, a final declaration will be required to confirm and adjust the figures before tax is calculated.
  4. Software Compliance
     Manual record-keeping will no longer be acceptable. Taxpayers must use compatible software to record and submit their financial data.

How We Will Support You

  • Guidance on Software Selection – We’ll help you choose and implement MTD-compliant software that suits your business needs.
  • Training & Support – Our team will provide training and ongoing support to ensure you’re confident in using digital tools for tax reporting.
  • Quarterly Review Services – To ensure accuracy, we will assist in reviewing and submitting your quarterly reports.
  • End-of-Year Assistance – We’ll help finalise your tax return to ensure compliance and accuracy.
  • Regular Updates – As HMRC refines the MTD process, we’ll keep you informed of any changes that may impact you.

Get Ready for MTD with Confidence

We understand that transitioning to MTD may seem daunting, but with our expert guidance, you can ensure compliance while maintaining control over your finances. If you have any questions or would like to discuss how MTD affects your business, get in touch with us today.

Contact turpin barker armstrong at bsg@turpinba.co.uk to prepare for MTD with ease!
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