{"id":27033,"date":"2025-09-10T14:55:34","date_gmt":"2025-09-10T14:55:34","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/blogs\/?p=27033"},"modified":"2025-09-10T15:25:15","modified_gmt":"2025-09-10T15:25:15","slug":"making-tax-digital-is-your-business-ready-for-hmrcs-next-big-shake-up","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/blogs\/making-tax-digital-is-your-business-ready-for-hmrcs-next-big-shake-up\/","title":{"rendered":"Making Tax Digital \u2013 Is your business ready for HMRC\u2019s next big shake-up?"},"content":{"rendered":"\n<p>Making Tax Digital (MTD) is the Government&#8217;s initiative designed to streamline and digitise tax reporting in the UK.<\/p>\n\n\n\n<p>While the MTD scheme has been in force for the past few years, changes are approaching, particularly self-employed individuals (sole traders) and landlords.<\/p>\n\n\n\n<p>Below, we outline clearly what MTD is, who it affects, the upcoming changes, and the steps you need to take to prepare.<\/p>\n\n\n\n<p>For more in-depth information, please see our full <a href=\"https:\/\/moorethompson.co.uk\/pdf\/MT_MTD_Income_Tax_Guide.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital guide<\/a> or view our <a href=\"https:\/\/www.moorethompson.co.uk\/pdf\/Moore-Thompson-MTD-Roadmap-2025.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">MTD roadmap infographic<\/a>.<\/p>\n\n\n\n<p><strong>What is Making Tax Digital<\/strong><\/p>\n\n\n\n<p>MTD is intended to modernise the tax system by requiring digital record-keeping and regular digital submissions.<\/p>\n\n\n\n<p>It is designed to increase accuracy, improve efficiency, and give taxpayers clearer visibility of their tax position throughout the year.<\/p>\n\n\n\n<p><strong>When do the MTD changes start?<\/strong><\/p>\n\n\n\n<p>The next phase of MTD (MTD for Income Tax Self-Assessment (ITSA)) comes into effect from April 2026 and will impact:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Self-employed individuals ( Sole traders)<\/li>\n\n\n\n<li>Landlords<\/li>\n<\/ul>\n\n\n\n<p>You will be affected if your turnover from self-employment and\/or property exceeds \u00a350,000 per year.<\/p>\n\n\n\n<p>This threshold will reduce to \u00a330,000 from April 2027, and as announced in this year\u2019s Spring Statement, the threshold will drop again to \u00a320,000 in April 2028.<\/p>\n\n\n\n<p>HM Revenue &amp; Customs (HMRC) have already begun notifying those affected based on your 2023-24 Self-Assessment return.<\/p>\n\n\n\n<p><strong>What exactly is changing?<\/strong><\/p>\n\n\n\n<p>Under MTD for ITSA, from April 2026, you will need to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Keep digital records of your income and expenses<\/li>\n\n\n\n<li>Submit quarterly updates to HMRC using approved MTD-compatible software<\/li>\n\n\n\n<li>Complete an end-of-period statement (EOPS) and submit a final declaration annually<\/li>\n<\/ul>\n\n\n\n<p>This new process means tax information is updated more regularly, enabling better management of your tax obligations throughout the year.<\/p>\n\n\n\n<p><strong>How to prepare for Making Tax Digital<\/strong><\/p>\n\n\n\n<p>Here is what you can do now to ensure a smooth transition:<\/p>\n\n\n\n<p><strong>Check if you are affected<\/strong><\/p>\n\n\n\n<p>Determine if your income from self-employment and\/or property exceeds \u00a350,000 per year.<\/p>\n\n\n\n<p>HMRC have already began contacting affected taxpayers recently, but it is beneficial to understand your position early.<\/p>\n\n\n\n<p><strong>Choose appropriate software<\/strong><\/p>\n\n\n\n<p>You must use MTD-compatible software to maintain digital records and submit quarterly updates. If you need advice or assistance choosing the right software, we can help.<\/p>\n\n\n\n<p><strong>Decide when to sign up<\/strong><\/p>\n\n\n\n<p>HMRC offers two sign-up options:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Early sign-up (2025-26 tax year) <\/strong>\u2013This allows you additional time to adjust, along with access to HMRC&#8217;s specialist support.<\/li>\n\n\n\n<li><strong>Standard sign-up (2026-27 tax year) <\/strong>\u2013You can wait until April 2026 to comply.<\/li>\n<\/ul>\n\n\n\n<p><strong>Explore exemptions<\/strong><\/p>\n\n\n\n<p>Some individuals may qualify for exemptions due to age, disability, or lack of access to digital tools.<\/p>\n\n\n\n<p>If you believe an exemption may apply to you, we can assist in assessing eligibility and applying on your behalf.<\/p>\n\n\n\n<p><strong>How we can help<\/strong><\/p>\n\n\n\n<p>Our expert team is here to support you throughout your transition to Making Tax Digital. We offer personalised help to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Establish compliant digital record-keeping practices.<\/li>\n\n\n\n<li>Select and integrate suitable MTD-compatible accounting software.<\/li>\n\n\n\n<li>Provide ongoing guidance and ensure your quarterly submissions are accurate and hassle-free.<\/li>\n<\/ul>\n\n\n\n<p><strong>Act early and avoid the stress<\/strong><\/p>\n\n\n\n<p>The rules may not take effect until April 2026, but starting your preparation now can reduce stress and ensure you are confidently ready for the transition.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.moorethompson.co.uk\/contact-us\/\">Contact us<\/a> today for help and assistance with anything related to MTD and discover how we can make sure you are prepared for the changes.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Making Tax Digital (MTD) is the Government&#8217;s initiative designed to streamline and digitise tax reporting in the UK. While the MTD scheme has been in force for the past few&hellip; <a href=\"https:\/\/www.moorethompson.co.uk\/blogs\/making-tax-digital-is-your-business-ready-for-hmrcs-next-big-shake-up\/\"><span class=\"meta-nav\">Read more&hellip;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,36],"tags":[],"class_list":["post-27033","post","type-post","status-publish","format-standard","hentry","category-blog","category-mtd"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Making Tax Digital \u2013 Is your business ready for HMRC\u2019s next big shake-up? - Moore Thompson<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.moorethompson.co.uk\/blogs\/making-tax-digital-is-your-business-ready-for-hmrcs-next-big-shake-up\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Making Tax Digital \u2013 Is your business ready for HMRC\u2019s next big shake-up? - Moore Thompson\" \/>\n<meta property=\"og:description\" content=\"Making Tax Digital (MTD) is the Government&#8217;s initiative designed to streamline and digitise tax reporting in the UK. 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