What Does MTD April 2026 Mean for Your Business?
If you are a sole trader or landlord, then you have probably heard about Making Tax Digital. What you might not know is that from April 2026, just a few months around the corner, is that you may have to register for it. What is Making Tax Digital and what do you need to do next? Don’t worry, we’re here with all the information that you need.
What is Making Tax Digital?
How does Making Tax Digital work? Well, anyone who is required to register for MTD, more on that in a moment, will have to keep digital records rather than paper ones and use compatible software to do so. They will also have to submit updates every quarter, bringing the way they file their tax much closer to real-time. This will make keeping records much easier and reduce the risk of any admin errors.
When does Making Tax Digital Start?
It already has for many people. It is already in place for VAT, and this year is being rolled out to those who pay income tax for the first time. So if you are someone who has to file VAT returns, then you will likely be familiar with the system and what you need to do already.
What does Making Tax Digital Mean for you?
First of all, who needs to register for Making Tax Digital? Anyone who meets all of the following criteria will need to begin doing so as well:
- You are an individual registered for Self Assessment
- You get income from self-employment or property, or both
- You have a qualifying income of more than £50,000
Is Making Tax Digital compulsory?
If you meet the criteria, then yes, it is. Failing to register will mean that you aren’t filing in line with HMRC’s requirements, and this could land you in hot water. There are fines for not using Making Tax Digital, so don’t be tempted to stick to your old method of keeping paper records if you are tempted to do so. Looking for help in making the switch? That is where we come in.
Why work with Linda Carr Accountants?
If you have been wondering how to register for Making Tax Digital or have questions about how the process will look for you, get in touch with us today. We are here to advise new and existing customers on whether they need to register and will guide them through the process. A change in tax obligations can be stressful, which is why our knowledgeable team will ensure that you are operating in full compliance with HMRC regulations.
Talk to us
To find out more about Making Tax Digital and if you need to do anything when the new tax year starts in April, get in touch with our team today. We can’t wait to hear from you and give you all the information you need.