For any sole trader, landlord or self-employed individual with an income over £50,000, the time of Making Tax Digital (MTD) for income Tax is nearly here.
From April 2026, it will be necessary to adopt the new system regardless of whether you feel ready to do so.
For those set to be impacted in subsequent years, it is worth observing what preparations are required so that you too can get ready.
How do I get ready for Making Tax Digital?
By now, you should have received a letter from HMRC detailing the steps required to get ready for MTD.
If you haven’t, that does not mean you can ignore it and we hope that you may have seen some of the advice we have put out on the subject.
As a refresher though, MTD will bring with it the need for digital record keeping and quarterly filings alongside the usual annual submission.
As you need to make a submission once a quarter, the deadlines for MTD will typically be:
Your final declaration will still have a deadline of 31 January.
It is imperative that you keep up with these deadlines, as there will eventually be penalties for missing them.
The penalties do not begin taking effect until 2027, but that is no excuse to neglect your duties in the meantime.
What steps should I take now to prepare for MTD?
The most vital step is ensuring that you are comfortable using MTD-compliant software.
There is a range of different options available on the market, but they will not all be suitable for every person impacted by MTD.
As such, you should endeavour to find software that you feel comfortable using, that does what you need it to and is at a price you are comfortable paying.
Our team is on hand to help you adapt to MTD and keep compliant as you get used to the new obligations.
We can support you in moving away from physical record keeping and assist you with getting your digital records straightened out.
If MTD is set to impact you later, now is the time to begin preparing so that you do not face a chaotic scramble to get ready.
Speak to our team today to finish your MTD preparations.
