If you run your practice as a sole trader or if you are a UK landlord, you will probably be aware of the Making Tax Digital scheme.
From April this year, Making Tax Digital will be mandatory for you if you have a gross income of over £50,000 annually from your self-employment or property income. This means submitting returns quarterly and online, as well as completing the usual annual tax return to make any final adjustments for the year.
If applicable, your accountant will discuss MTD with you directly and how we can help.
In order to make your MTD submission easier, we would strongly encourage you to complete your annual accounts for the tax year up to 5 April 2026 in April, May or June this year. This will mean that your tax records roll on chronologically to the first MTD reporting quarter which will cover April to June 2026.
We also suggest setting up a separate bank account for your private practice or property income if you have not already done so. In this way, you can simply download a record of your transactions and send to your accountant.
Our hassle-free MTD service
We are pleased to offer our clients a full MTD service to help comply with the new rules. The fee for each quarterly MTD return is £150 plus VAT, rising to £200 plus VAT for clients with income greater than £90,000 and therefore more complex reporting.
If you have multiple MTD returns, for example, you may qualify for the scheme based on your rental and private practice incomes, then our fee will be £75 plus VAT for each additional tax return needed.
We aim to make MTD as simple as possible for you and look forward to assisting you. Please speak with your accountant if you require any further information.
