Making Tax Digital

Making Tax Digital has been hitting the headlines. It’s an initiative changing how we submit financial information to calculate the tax we owe. HMRC’s goal is to increase accuracy and save time.

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Who needs to comply with Making Tax Digital?

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Many businesses have already moved to this new way of working as Making Tax Digital (MTD) has been introduced for VAT. Next, MTD will include income tax, affecting individuals and landlords who submit a Self Assessment tax return.

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What’s involved with Making Tax Digital?

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The main requirements of MTD are:

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• Keeping records digitally.
• Submitting quarterly updates to HMRC (currently annually).
• Providing Self Assessment tax returns using MTD-Compatible software.

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This means moving away from Excel spreadsheets and written records. Don’t worry! The team at Pomroy Associates can advise and support you. We work with several online bookkeeping solutions that comply with MTD. We’ll find the right one for you.

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When does MTD for Self Assessment income tax begin?

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MTD for income tax will be introduced in two phases:

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• from April 2026, for those with qualifying income over £50,000, an
• from April 2027, for those with qualifying income over £30,000.

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This may seem far away, but time flies by! Making changes now makes the transition to MTD so much easier.  We’re here to demystify MTD, advising you along the way.

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It’s time to get ready!

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