HMRC is changing the way some sole traders and landlords need to report their income and expenses.
This will apply to sole traders and landlords with total income from self-employment and property of over £50,000 (before expenses or taxes are deducted).
If your income from these sources is more than £50,000 in your 2024-25 Self-Assessment tax return, you will need to use Making Tax Digital for Income Tax from 6th April 2026 (unless you are exempt).
You’ll need compatible software to use Making Tax Digital for Income Tax. SRC will be offering you an option for digital software or you as the client can sort this yourself.
- Create, store and correct digital records of income and expenses (from self-employment and property).
- Send HMRC your quarterly updates (summaries of your digital records).
- Submit your tax return.
SRC will be making contact and advising when we have done your 2024-25 tax return. This will include a conversation about software and costs going forward.
From April 2025, you will have two options:
- Sign-up now for the 2025-26 tax year to prepare your business and to familiarise yourself with the changes. If you choose to sign-up now, you will be given exclusive access to HMRC’s Making Tax Digital Customer Support Team – as well as the support you will receive from SRC with the transition.
- Sign-up for the 2026-27 tax year.
If you would like any advice on the changes to Making Tax Digital for Income Tax, please do not hesitate to call us on 01384 403500
SRC Accountancy Ltd.
Making Tax Easy…
