UP to a million taxpayers who will be required to use digital recordkeeping and send quarterly updates to HMRC when Making Tax Digital (MTD) is extended next April should start preparing now, a leading accountant has warned.
From 6 April 2027, individuals with qualifying self-employment and property income over £30,000 will be mandated into MTD. Those with income above £50,000 have been mandated since April this year.
JF Hornby Accounts Executive, Cameron Bell, said: “The £30,000 threshold will bring in a much bigger cohort, many of whom have never had to think about digital reporting before. So MTD could represent a significant shift in how they are dealing with HMRC.
“With six months to go, I would advise them to start preparing now. If you haven’t done so already, check whether your qualifying income for the 2025/26 tax year brings you into MTD.”
Advice: Accounts Executive Cameron Bell
Making Tax Digital is a legal requirement to keep digital business records and send HMRC an online update every three months, followed by a year-end final declaration. This all needs to be done via HMRC-approved software.
Unlike the first intake in 2026, from next April there will be financial penalties for repeatedly missing deadlines.
Cameron said: “I advise people who will be affected from April 2027 to get into the habit before then of recording income and expenses as they happen. That will give you a clearer picture of your cashflow and make quarterly reporting easier.
“With the right support, MTD is entirely manageable. But it’s important to not bury your head in the sand. If you have any questions about accounting software, about whether you qualify to do MTD, about exemptions such as partnerships, or anything else, just get in touch.
“Don’t wait until the last minute to ask for help. Your accountant can offer advice and flag anything you might be missing. The earlier you start the conversation, the smoother the process will be.”
If you need help with making Tax Digital, contact the team at JF Hornby & Co on 01229 588 077 or on jfh@jfhornby.com
