The implementation of Making Tax Digital for income tax self-assessment is slated to begin in 2026/27 for sole traders and property landlords earning £50,000 or more in gross income. Subsequently, the threshold decreases to £30,000 from 2027/28.

The government has recently affirmed that the quarterly returns required will encompass cumulative income and expenses, eliminating the need for an end-of-period statement. HMRC has outlined the specific income and expenditure categories to be reported and clarified that businesses below the VAT registration threshold will only need to submit simplified three-line accounts: total sales, total expenses, and profit or loss for the period.

Despite these developments, several unresolved issues persist prior to the commencement of the new reporting requirement. We are committed to collaborating with you to ensure that your accounting system is compliant.