HM Revenue & Customs are starting their testing for their long delayed Making Tax Digital project for Income Tax.
MTD for VAT has been with us for a few years and on the whole, seems to have worked relatively well, as business registered for VAT have been used to filing quarterly returns.
However MTD for Income Tax is due to come into force in April 2026 for businesses/landlords with an income of £50,000 or more. From April 2027 the threshold to join drops to £30,000.
This will be a significant change for most businesses who aren’t VAT registered, they will be mandated to file quarterly and will need systems and processes to enable that.
Cloud accounting software is generally the answer and perhaps moving over in the year ahead might make April 2026 less stressful!
HM Revenue & Customs are certainly preparing for MTD for Income Tax happening, so it makes a lot of sense to make sure that you are prepared too.
Please get in touch to discuss your options and to understand the benefits to Cloud accounting.
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