Making Tax Digital 2026: Is the Annual Self Assessment Tax Return Ending?
Making Tax Digital for Income Tax Self Assessment is bringing major changes to tax compliance. If you are self-employed or a landlord with a combined gross qualifying income over £50,000, you now have to join the system. This qualifying income is based on the turnover before expenses.
Moreover, from April 6, 2027, the threshold will fall to £30,000, and from April 6, 2028, it will drop again to £20,000. This means more people will need to follow MTD rules in the coming years.
With the new MTD rules, you need to send digital quarterly updates of your income and expenses to HMRC using approved accounting software. You also have to file a final declaration by 31 January each year. If you miss the required quarterly deadlines, you will get penalty points, which can lead to automatic fines.
Not sure how these new reporting rules change if you switch your business structure? Check out our guide: Sole Trader vs Limited Company: Choosing Your Financial Blueprint.
Get in touch with our accounting team today to help your business move to MTD-compliant software and avoid late-filing penalties.
