This special edition of our Pay Less Tax newsletter focuses on the upcoming changes around Making Tax Digital for Income Tax — and what you need to know to stay compliant and avoid penalties.
Who Will Be Affected?
Sole traders and landlords with annual turnover over £50,000 could need to register for MTD from April 2026. Lower thresholds follow in future years, so preparation is key.
What Will Change?
If you’re caught by MTD, you’ll need to maintain digital records and submit quarterly reports — and a finalisation statement — using compatible software. The one-off January tax return will be replaced with ongoing submissions.
Can It Be Avoided?
There are limited exemptions and deferrals. Some taxpayers can apply for exemption; others may delay registration depending on structure or turnover. We can help assess your position.
Penalties and Pitfalls
New points-based penalties for late submissions and daily charges for late payment could hit hard. Understanding the deadlines and requirements now is essential to avoid costly mistakes later.
Get Prepared
With complexity and compliance burdens increasing, we recommend a pre-MTD review to check your obligations and software setup. We’re here to support you through the transition.