| Making Tax Digital (MTD) for Individuals is coming soon. Will it affect you? If you are you a sole trader or a landlord with annual income of more than £30,000 then yes it will. Firstly, what is MTD? HMRC wants people to maintain their records in digital format, and for more regular reports to be submitted to them other than just annually. What will it mean? Every receipt and every expense will need to be fed into a digital system that is compatible with MTD reporting. MTD for Individuals is the next stage from April 2026 Initially, you will need to join MTD for Individuals if you receive income from property and/or self-employment that together total more than £50,000 in the 2024/25 tax year. This will be expanded to those whose turnover exceeds £30,000 in 2025/26 and is likely to be extended further in future years. |
 Non-UK resident or non-UK domiciled. MTD will apply to non-UK resident/domiciled individuals with UK self-employment and/or UK property income that exceeds the threshold. Partnerships or businesses run through a company. MTD does not apply to businesses that are run through a partnership or company. However, it is likely to be expanded to encompass these at some point in the future. |
| Does it apply to you? If your 2024/25 tax return shows turnover from self-employment and/or rental income that amounts to more than the relevant MTD threshold, HMRC will notify you that you need to sign up for MTD. HMRC have stated clearly that it is the tax-payers responsibility to sign up to MTD at the right time. If you think MTD will apply to you, we recommend you start planning now. Penalties will apply if deadlines are not met. Switching to MTD compliant software now will mean you are fully prepared. Would you like help? If you don’t have time, or don’t wish to spend time on this, get in touch with us as soon as possible. Blackman Terry are a local practice that has been helping professionals like you for over 25 years. |
| For further information please contact enquries@blackmanterry.co.uk Or visit www.blackmanterry.co.uk |