Important Update – Making Tax Digital for Income Tax from April 2026

Big changes are coming to how some individuals report their income to HMRC.

What's Changing?

• HMRC is requiring digital record keeping and quarterly submissions for income and expenses using approved software.
• Income considered is gross – that's before any expenses are deducted.
• Even if you make a low profit or a loss, you may still need to comply if your gross income exceeds £50,000.

Who is Affected?

• Individuals whose gross income from self-employment or property exceeded £50,000 in 2024/25.
• HMRC has already contacted many who exceeded this in 2023/24, but 2024/25 is the key year for MTD registration.

Key Deadlines (from April 2026)

Please note: A final declaration is due by 31 January after the tax year ends.

Important:

• Tax payment deadlines remain unchanged: 31 January and, if applicable, 31 July.
• However, under MTD, the number of required submissions increases from one to five per year, which creates more opportunities for HMRC to issue penalties for missed or late filings. Ensuring timely submissions is more critical than ever.

How We're Helping

Mitchell's Grievson will:

• Identify affected clients based on 2024/25 income
• Register clients for MTD where required
• Support you through online authorisation (even if we already act on your behalf)
• Help you choose compatible software and submit quarterly updates accurately and on time

For full HMRC guidance, visit:

https://www.gov.uk/government/collections/making-tax-digital-for-income-tax-for-businesses-step-by-step

We will be contacting affected clients directly. If you believe your income may exceed the threshold, please start preparing now – the earlier you're ready, the lower your risk of non-compliance and potential fines.