At Seagrave French, we’re here to help business owners, landlords, and sole traders prepare for the upcoming changes to Making Tax Digital (MTD) for Income Tax. With the UK government introducing new digital tax requirements, it’s essential to understand what’s changing, who it affects, and how to stay compliant.
What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) is part of the government’s plan to digitize the tax system. The goal is to improve efficiency, reduce errors, and make tax reporting easier for self-employed individuals and landlords.
Instead of submitting an annual Self-Assessment tax return, you’ll need to keep digital records and submit quarterly tax updates using MTD-compatible software.
Who Needs to Comply with MTD for Income Tax?
From April 2026 – If you’re a sole trader or landlord earning over £50,000 annually, you must comply with MTD for Income Tax.
From April 2027 – If your income is over £30,000, you will also be required to follow MTD rules.
❌ If your income is below £30,000, MTD for Income Tax won’t apply yet, but it’s still good practice to prepare for potential future changes.
What Changes Are Coming?
If you’re currently submitting an annual Self-Assessment tax return, MTD for Income Tax will introduce four key changes:
✅ Digital Record-Keeping – You must store business income and expenses in an MTD-compliant software.
✅ Quarterly Updates – Instead of an annual return, you’ll submit four quarterly updates to HMRC throughout the year.
✅ End-of-Year Submission (EOPS) – At the end of the tax year, you’ll need to finalize your tax position and confirm all updates.
✅ Final Declaration – This replaces the Self-Assessment tax return, summarizing your income and tax due.
How Seagrave French Can Help You Prepare
We know these changes may seem overwhelming, but Seagrave French is here to make the transition easy. Here’s how we can support you:
✔ MTD Software Guidance – We’ll help you choose and set up the best MTD-compatible software for your business.
✔ Training & Support – Our team can guide you through digital record-keeping and reporting.
✔ Quarterly Tax Check-Ins – We’ll ensure your quarterly submissions are accurate and timely.
✔ Tax Planning & Advice – With real-time updates, we can help you plan your tax payments effectively and reduce surprises.
What You Should Do Now
Check if You’re Affected – If you earn over £50,000, start preparing now.
Get MTD-Compliant Software – We can help you find the best digital tax tools for your needs.
Start Keeping Digital Records – Get comfortable with digital bookkeeping before the MTD deadline.
Book a Consultation with Us – We’ll assess your situation and help you stay compliant.
Let’s Make MTD Easy for You!
At Seagrave French, we specialize in helping business owners, landlords, and sole traders transition smoothly to Making Tax Digital. Don’t wait until the deadline – let’s get MTD-ready today!
#MakingTaxDigital #MTDforIncomeTax #TaxAdvice #SeagraveFrench #SmallBusinessSupport
