Get Ready for Making Tax Digital for Income Tax : Two Further Software Developers Added to the List
Making Tax Digital for Income Tax will begin to become mandatory for certain taxpayers from 6 April 2026.
Individuals will need to use Making Tax Digital for Income Tax from 6 April 2026 if all of the following apply:
- They are an individual registered for Self Assessment;
- Receive income from self-employment or property, or both, before 6 April 2025; and
- Have a qualifying income of more than £50,000 in the 2024 to 2025 tax year
From 6 April 2027, Making Tax Digital for Income Tax will extend to those whose qualifying income is between £30,000 and £50,000.
There are no plans at this time to extend Making Tax Digital for Income Tax to those with a qualifying income of under £30,000.
Please note, although partnerships are not covered currently, the government says it is committed to eventually extending it to general partnerships.
How to check if Making Tax Digital for Income Tax applies
HM Revenue & Customs (HMRC) have added a helpful online tool that asks a series of questions to determine if individuals will need to use Making Tax Digital for Income Tax and when they need to start.
Click here to access the interactive Making Tax Digital for Income Tax checker.
Software to use
Individuals that need to sign up to Making Tax Digital for Income Tax, and those that have volunteered to test and develop the service, are required to use compatible software.
Chosen software must have the capacity to create and store digital records of business income and expenses, send quarterly updates, submit tax returns and receive information from HMRC.
The functionality of software varies, some enable digital records of income and expenses to be kept, whilst others act as bridging software – this is where spreadsheets are used to keep digital records and compatible software sends updates to HMRC.
HMRC have released a list of software that is now available and aligns with Making Tax Digital for Income Tax – FreeAgent and Hammock for landlords have recently been added to this list:
– 123 Sheets Ltd: for bridging and record keeping
– APARI: for record keeping
– Digita Personal Tax — Thomson Reuters: for bridging
– FreeAgent: for record keeping
– Hammock for landlords: for record keeping
– Intuit QuickBooks Online: for record keeping
– Sage Accounting: for record keeping
– SE_reports: for bridging
– self assessment direct: for bridging and record keeping
Further details on the software now available can be found on GOV.UK by clicking here.
M+A Partners will continue to provide updates on Making Tax Digital for Income Tax as further guidance is released.
For any queries on this matter, please get in touch with your usual M+A Partners’ contact or contact me using the details below or email enquiries@mapartners.co.uk
