{"id":26611,"date":"2026-03-05T07:30:15","date_gmt":"2026-03-05T07:30:15","guid":{"rendered":"https:\/\/microvibenews.com\/?p=26611"},"modified":"2026-03-05T07:30:15","modified_gmt":"2026-03-05T07:30:15","slug":"making-tax-digital-is-here-are-you-ready-daily-business-magazine","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=26611","title":{"rendered":"Making Tax Digital is here. Are you ready? \u2013 Daily Business Magazine"},"content":{"rendered":"

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A big change in filing accounts is about to come into effect, says FRASER CAMPBELL <\/strong><\/h4>\n
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Landlords, sole traders and the self-employed are being urged to prepare for \u2018the death of the traditional tax return\u2019 in April.\u00a0Those with gross income above \u00a350,000 per year will have to comply with a new Making Tax Digital (MTD) regime.\u00a0<\/p>\n

Under the HMRC shake-up, qualifying individuals and businesses will be required to keep digital records, use MTD-compatible software and submit updates every quarter, as well as a final declaration.\u00a0<\/p>\n

The overhaul \u2013 the most significant since the introduction of self-assessment in 1997 \u2013 will bring the tax system closer to real-time and affect 864,000 individuals and landlords UK-wide from 6 April of this year, with numbers predicted to rise to 2.9m within three years. \u00a0<\/p>\n

MTD truly signifies the death of the traditional income tax return. \u00a0It represents a major change with the introduction of digital reporting obligations for hundreds of thousands of landlords, sole traders and the self-employed from April onwards.\u00a0<\/p>\n

It is crucial that they put plans in place to deal with this shift to ensure a smooth and compliant transition to the new regime as the April deadline is fast approaching.<\/p>\n

While this will mean changes in processes and software that is compliant with MTD, the switch will bring advantages too with access to near real-time digital information about taxes for thousands of people for the first time.\u00a0<\/p>\n

It will place accurate financial information into the hands of you or your tax adviser more regularly to assist with visibility over business performance, forward tax planning and forecasting as well as a smoother year-end process.\u201d\u00a0<\/p>\n

Top tips for landlords, sole traders and the self-employed for the new MTD regime include:<\/p>\n

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  • Check qualifying income now to see if you fall under the new reporting obligations.<\/li>\n
  • Bear in mind the threshold will drop in subsequent years so start preparations if you are likely to qualify for MTD in 2027 or 2028.<\/li>\n
  • Ensure that your \u2013 or your accountant\u2019s \u2013 software is HMRC approved so it is compatible with MTD. Start using software now for a smooth transition in April<\/li>\n
  • There may be MTD exemptions \u2013 check on the HMRC website or seek expert advice\u00a0<\/li>\n<\/ul>\n

    Preparation, planning ahead and taking advice at the right time are key for compliance and maximising any benefits from our ever-evolving tax landscape.<\/p>\n

    According to HMRC, nearly two million VAT-registered businesses have been required to use MTD software for recordkeeping and returns since April 2022.\u00a0<\/p>\n

    Landlords, sole traders and the self-employed with the qualifying income of over \u00a350,000 for the 2024-25 tax year will fall into scope for MTD from 6 April.\u00a0<\/p>\n

    Under a phased roll-out, from April 2027 those with a qualifying income of \u00a330,000 will fall into scope. From April 2028, those with qualifying income over \u00a320,000 will be included.<\/p>\n

    Fraser Campbell is the Glasgow-based UK head of ABAS at Azets <\/em><\/p>\n

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