Self-employed taxpayers and landlords who earn more than £50,000 will be required to join Making Tax Digital (MTD) for Income Tax next year.
These changes will come into force from April 2026, and taxpayers must have the correct software to meet these obligations.
The Low Incomes Tax Reform Group (LITRG) is urging people to file their 2024/25 tax return early to see whether their income exceeds this limit so that they can better prepare themselves for the changes.
Sharron West, Technical Officer at LITRG, said, “There are still more than six months to go until the self assessment deadline for 2024/25 tax returns, but if you think you may meet the MTD threshold, you should act now.
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“Completing your 2024/25 self assessment tax return means you will know whether you have reached the income threshold that will require you to take part in MTD from April 2026.
“You might not get a letter from HMRC notifying you of this until after the self assessment deadline, so by acting now, you are not only giving yourself the best chance of being ready for MTD, you’ll also know how much tax you will need to pay by 31 January 2026, giving you plenty of time to plan for this too.”
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