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Making Tax Digital

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Making Tax Digital

Making Tax Digital for Income Tax Self-Assessment (‘MTD for income tax’) is the most fundamental change to the administration of the UK tax system since the introduction of self-assessment. As implementation is rolled out, the Institute will support its members. Self-employed individuals and landlords will be required to keep their accounting records electronically and must file quarterly returns of income and expenditure to HMRC. To finalise their tax position, a digital tax return will need to be submitted after the tax year. MTD for income tax is being implemented in phases commencing from April 2026 for those with income more than £50,000. From April 2027, those with income from self-employment and/or property of more than £30,000 will be mandated and finally incomes of more than £20,000 will have to join MTD from April 2028

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HMRC provides guidance on choosing software for Making Tax Digital for Income Tax

HMRC has published guidance on choosing software for Making Tax Digital for Income Tax (MTD). As readers will know by now, from 6 April 2026, sole traders and landlords within scope of MTD must start using compatible software to report their income under MTD. HMRC has issued guidance explaining what your software will need to do, the types of software that can assist, as well as choosing the right software for your specific needs. Before you start You will need to answer a few questions to get a tailored list of software options. These include your income sources (self-employment, UK property, foreign property), whether you want to create new digital records or link existing ones, and your accounting period. Essentially, the tool personalises recommendations based on your business type and reporting needs. Find software now The page provides a search tool to find software compatible with MTD. You can filter options to suit your requirements. HMRC does not supply its own software; you must choose from approved providers using the official tool. After you’ve chosen your software Once selected, you need to sign up for MTD and authorise your chosen software to connect with HMRC. Choosing software is only the first step—proper setup and authorisation will be essential for compliance.

Nov 03, 2025
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This week’s miscellaneous updates – 27 October 2025

In this week’s detailed miscellaneous updates which you can read more about below, the October edition of HMRC’s Employer Bulletin is available and HMRC has sent an important reminder about its new Self-Assessment (SA) reactivation service. HMRC is also seeking research participants for a project examining the Agent Services Account and Making Tax Digital (MTD) for Income Tax. In other news this week: The guidance on additional support from HMRC’s extra support team has been updated to confirm that the team can also now deal with taxes for employers, At the six months to go mark, HMRC sent an email asking ‘Are you ready for MTD for Income Tax?’, and HMRC has published a policy paper designed to help UK taxpayers make informed choices about representation by tax advisers and other intermediaries. The paper is part of its ongoing raising standards in the tax advice market project. October Employer Bulletin The October edition of HMRC’s Employer Bulletin brings you all the latest updates and guidance to support employers, payroll professionals and agents. Included in this edition are: making PAYE Settlement Agreement payments, guidance for labour supply chains featuring umbrella companies: PAYE responsibilities, ·new advisory electric rates for fully electric company cars, Spotlight 71: agency workers and contractors moved between umbrella companies, 'Tax Help for hustles' campaign: new resources for employees, and Winter fuel payments: recovery through the tax system. SA client reactivation service In last week’s detailed miscellaneous updates, we highlighted HMRC’s new SA client reactivation service which was launched on 1 October. According to HMRC, the service is working well so far and has been used by a large number of agents. HMRC is however advising that some agents are using the service when they have general SA or individual PAYE queries to resolve. In such instances, the SA re-activation team cannot transfer the caller to the right team which is causing frustration for the agent who must then re-phone the Agent Dedicated Line (ADL). HMRC is stressing that the SA re-activation team can only re-activate clients’ SA accounts. Other SA or PAYE related enquiries are dealt with by a separate team reached by selecting option 2 (SA or individual PAYE queries) when dialling the ADL, followed again by option 2 (anything else) when prompted. HMRC research: Agent Services Account and MTD for Income Tax HMRC is seeking interested agents to participate in user research sessions focusing on the Agent Services Account and MTD for Income Tax. Each session will be held virtually on a one to one basis and is expected to last 60 – 90 minutes. Love2shop vouchers are available as a small incentive. The link to sign up to take part is:  https://survey.take-part-in-research.service.gov.uk/jfe/form/SV_74GjifgnGv6GsMC?Source=BannerList_HMRC_Live_services_agents.

Oct 28, 2025
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This week’s miscellaneous updates – 13 October 2025

In this week’s miscellaneous updates: The latest HMRC Stakeholder Digest from 2 October is available, HMRC is holding a range of webinars for employers, these include a webinar later this month looking at phones, internet and homeworking expenses, and another in December which will examine expenses and benefits for employees with more than one workplace, HMRC’s Guidelines for Compliance team has published Help with Freeports — GfC14, and The Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025 has received Royal Assent. This legislation allows councils in Wales to introduce an overnight visitor levy and requires the registration of all visitor accommodation providers in Wales.

Oct 13, 2025
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