With just two months to go until the new Making Tax Digital (MTD) for Income Tax rules come into play, those affected are being urged to start preparing now.
According to figures, there are expected to be more than 850,000 landlords and sole traders in the first wave of taxpayers who will need to ‘go digital’.
What is Making Tax Digital?
Making Tax Digital is a key part of the government’s tax administration strategy – a 10-year plan with the aim of building a ‘trusted and modern’ tax system.
Eventually, all businesses will need to keep digital records by using software that works with MTD and then submit updates every quarter.
This will help to bring the tax system closer to real-time.
If you are self-employed or a landlord, you will be affected from the:
- 6th April 2026 – if you have an annual business or property income of more than £50,000
- April 2027 – if you have an annual business or property income of more than £30,000
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ATT advises taxpayers to start preparing now
The Association of Taxation Technicians (ATT) is urging affected taxpayers to act now to ensure they’re ready for the change, advising that February and March are critical months for preparation.
The ATT’s advice is to:
- Confirm whether they are in the scope for MTD.
- Investigate and choose compatible commercial software.
- Speak to their accountant or tax adviser as early as possible.
- Understand quarterly deadlines and record-keeping requirements.
The ATT warns that leaving these steps until April puts taxpayers more at risk of errors, missed submissions and unnecessary stress.
Emma Rawson, ATT Director of Public Policy, commented, “Making Tax Digital is one of the biggest changes to the tax system in years, and it’s not something people should be trying to grapple with for the first time in April.
“February is the point at which preparation really matters. The message isn’t to panic, but to act now – check if you’re affected, get the right software in place, and seek advice early if you need it.”
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