What is Making Tax Digital for Self Assessment (MTD for SA)?
MTD for SA is an initiative by HMRC aimed at modernising the tax system. It requires businesses and landlords with qualifying income to maintain digital records and update HMRC each quarter using compatible software.
Who needs to comply with MTD for SA?
From April 2026, businesses and landlords with qualifying income exceeding £50,000 will need to comply with MTD for SA. From April 2027, this requirement will extend to those with qualifying income over £30,000.
What are the benefits of MTD for SA?
MTD for SA aims to reduce errors, save time, and improve the accuracy of tax submissions. By maintaining digital records and submitting quarterly updates, taxpayers can ensure their tax affairs are up-to-date and accurate.
What software do I need for MTD for SA?
You will need MTD-compatible software to maintain digital records and submit quarterly updates to HMRC. HMRC provides a list of compatible software on their website.
How do I know if I need to comply with MTD for SA?
The figures from your 2024/25 tax return will form the basis for assessing whether you fall within the criteria for MTD. If your qualifying income exceeds the thresholds set by HMRC, you will need to comply.
What if I don’t currently meet the criteria?
Even if you do not currently meet the criteria, it is likely that the income thresholds will be adjusted in future years. We recommend that all clients start preparing now to ensure a smooth transition when the changes come into effect.
How can I prepare for MTD for SA?
To comply with MTD for SA, you will need to ensure that your records are digitised. We have prepared a comprehensive guide on our website to help you understand how to keep your records in line with MTD requirements. Visit this guide for more information.
Will there be support available?
Yes, we are here to assist you every step of the way. Our team will provide detailed guidance and support closer to the implementation date to ensure you are fully prepared.
