Did you know that self-assessment tax returns are changing?

Did you know that self-assessment tax returns are changing? 

From April 2026 HMRC are rolling out the first phase of the changes to make tax digital for self-assessment.  This forms part of the Government’s plan to modernise the UK tax system, simplifying the process making it easier for people to file their tax accurately. 

Making Tax Digital for Income TAX (MTD for IT): what does this mean for me?  

It all sounds pretty scary for the self-employed peeps out there but unless your overall income is over £50,000 then you won’t be affected quite yet, and you can still submit your returns the old-fashioned way via the HMRC website.   

If your overall income will be over £50,000, then by April 2026 any sole traders, self-employed individuals, or landlords will need to submit their returns via HMRC-recognised software.  Yes, that means you will need more than a spreadsheet or sending your bank statements and box of receipts to your bookkeeper.  So, if this affects you then over the next year you will need to find a suitable software package to administer your accounts so that it is ready and in place before 6 April 2026. 

This also means you will be required to submit quarterly updates to HMRC, as well as a Final Declaration that includes all other taxable income by 31 January every year. 

The next phase of the roll out will be mandated from April 2027 and sole traders, self-employed individuals, or landlords with an overall income over £30,000 will be required to follow these new rules too. 

When will you need to send quarterly updates for MTD for IT? 

You have a month after the period end date to send your quarterly update.  

Who can submit quarterly updates for MTD for IT? 

You can do this yourself or, your accountant or bookkeeper can submit your quarterly updates for MTD for IT.  An accountant or bookkeeper can also assist in setting up the software for you and give you the necessary training. 

What software should I use for MTD for IT? 

There are many software providers that are offering compatible software ranging from free applications to cloud based packages such as QuickBooks and Xero.  Watch this space for my next blog where I will be evaluating the most popular options to help make this decision less daunting. 

To discuss MTD for IT requirements or any bookkeeping matters I am happy to help: please click on the ‘contact me’ button on my website.