With Making Tax Digital (MTD) for Income Tax set to affect additional taxpayers from April this year, a new guide has been launched offering help and advice.
More than 850,000 landlords and sole traders are expected to come into MTD from April, and for som,e this will be a big change.
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
New guide covers whole Making Tax Digital journey
According to HMRC data, from the 6th of April 2026, more than 200,000 unrepresented taxpayers will be required to follow the new rules.
The Low Incomes Tax Reform Group (LITRG) has published new guidance to help these taxpayers navigate the biggest change to the UK tax system since self-assessment.
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It has been designed to provide taxpayers who are unable to afford professional tax advice with free, clear and practical guidance on the new rules.
Victoria Todd, Head of LITRG, said, “Making Tax Digital is the biggest tax change since self-assessment, and with just over two months to go, time is running out to get ready.
“Many taxpayers will have the support of a tax adviser or accountant to guide them through the process. But for those who can’t afford professional tax advice, the new rules may seem confusing and the requirements daunting.
“We want to make it as easy as possible for taxpayers to understand whether the rules apply to them and what they need to do if that is the case.
“These new guidance pages cover the whole Making Tax Digital journey, from the basics of to whom the scheme applies, right through to the end of year tax return process.
“There are also examples to help illustrate how the scheme will work and links to where to get help if needed.”
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