Making Tax Digital

Making Tax Digital for Income Tax will begin on 6 April 2026, introducing a major change for sole traders and landlords who will need to keep digital records and submit quarterly updates to HMRC instead of relying solely on an annual tax return. The new rules will apply in stages based on qualifying income, starting with those above £50,000, then £30,000 and £20,000 in later years. While this will create a more frequent reporting process, it also offers the chance to improve accuracy, strengthen cash flow planning and make tax management more efficient.

From April 2026, HMRC’s Making Tax Digital for Income Tax Self-Assessment (MTDIT) will come into effect. This is a major change to the way self-employed individuals and landlords will need to report their income to HMRC. Instead of submitting a single annual Self-Assessment return, affected taxpayers will need to keep digital records and send quarterly updates to HMRC using ap ...

This blog post offers a practical guide to Making Tax Digital (MTD) and its implications for VAT-registered businesses in the UK. It outlines essential steps for compliance, including registration, choosing MTD-compatible software, maintaining digital records, and timely filing of VAT returns. With insights from Ward Williams, the article emphasises the importance of embracing MTD as an opportunity to enhance efficiency and accuracy in tax reporting. If you have questions or need assistance, the team at Ward Williams is ready to support you through this digital transformation.

Ward Williams Chartered Accountants are delighted to achieve Platinum Champion Partner status with Xero, the global leader in cloud-based accounting software. As part of our strategic direction to offer a cloud based accounting solution, Ward Williams chose to partner with Xero to provide its cloud platform. With intuitive real-time, integrated software, more and more of the f ...