Making Tax Digital

From the 6 April 2026 major changes to the way you report your Self Employment or Rental income/expenses to HMRC will take place.  Making Tax Digital (MTD) will require individuals to report their income/expenses quarterly rather than on one Tax Return.

From 6 April 2026: MTD will be mandated for self-employed businesses and landlords with turnover above £50,000 in 2024-25.

1. From: 6 April 2027: MTD will be mandated for self-employed businesses and landlords with turnover above £30,000 in 2025-26.
2. From 6 April 2028: MTD will be mandated for self-employed businesses and landlords with turnover above £20,000 in 2026-27. 

The Government is continuing to review the position for self-employed businesses and landlords with turnover below £20,000.

If your business/rental income aligns to the tax year the following returns will need to be submitted to HMRC for the 2026/27 tax year:

• 1^st Due by 5 August 2026 (covers 6 April 2026 to 5 July 2026)
• 2^nd Due by 5 November 2026 (covers 6 July 2026 to 5 October 2026)
• 3^rd Due by 5 February 2027 (covers 6 October 2026 to 5 January 2027)
• 4^th Due by 5 May 2027 (covers 6 January 2027 to 5 April 2027)

A final declaration will also need to be submitted by the 31 January following the end of the tax year.  This will include all of your other taxable income for example employment and investment income.  Adjustments can be made to the quarterly figures if required.  This will be similar to the normal self-assessment tax return.  

At TM Tax Ltd we can offer three levels of assistance:

1. Full Assistance. We can take care of everything for you. We will register you for MTD. You send us the information, and we will submit quarterly returns to HMRC using fully compliant MTD software.  We will also prepare and submit the year end final tax return.
2. Quarterly Check assistance. Where we check and submit the quarterly returns as well as doing the year end final tax return.  You would complete the MTD compliant quarterly spreadsheets (which we can supply) send them to us to check and we will submit to HMRC.  We will also prepare and submit the year end final tax return.
3. A Year End only service. We would submit the year end final return.  Once you have registered for MTD you will prepare and submit the quarterly returns yourself. Using MTD compliant software.

We know that this is a big change and can seem daunting, so do please get in touch.  We will be happy to assist.