HMRC is making changes to the way individuals submit their Income Tax Self Assessment (commonly referred to as a tax return) to move to a fully digital system providing the following benefits:
If your total turnover as a sole trader, from UK or overseas property, or through self-employment exceeds £50,000 you should have already received a letter from HMRC to let you know that you will be affected by the change. Even if you’re not affected this time, it’s important to note that from April 2027 HMRC will extend these changes to more taxpayers, with a further expansion planned for April 2028.
You can use our quick survey to find out if you will be affected by the changes.
The first of two key changes that will come with Making Tax Digital is that records must be submitted quarterly instead of just once per year. The quarterly update deadlines for the year from April 2026 will be as follows:
| Update period | Update deadline |
| 6 April to 5 July 2026 | 7 August 2026 |
| 6 July to 5 October 2026 | 7 November 2026 |
| 6 October to 5 January 2027 | 7 February 2027 |
| 6 January to 5 April 2027 | 7 May 2027 |
These updates are not tax returns, they are just a summary of how your business is doing. Following each of these submissions you’ll be able to see an estimate of what your tax bill will be, allowing you to plan ahead.
A final declaration will need to be submitted at the end of the tax year which will replace your current annual self-assessment tax return. Despite making 4 submissions each year the tax will only need to be paid once – due by 31st January the following year (with the addition of any payments on account required by 31st July).
The second key change is that from April 2026 the ONLY way to submit your self-assessment tax return to HMRC will be using one of their recognised software packages. The good news is that there are a number of options to choose from. Our expert personal tax team have been thoroughly testing a range of recognised software and can advise you on the most suitable for you and your business.
The changes in the tax system are compulsory and there will be no alternative means to submit your tax return. HMRC will run a points system with fines applied once a certain number of points have been reached. Fines will be applied for late submissions as well as late payment and for those failing to use an approved software. With 4 submissions each year it’s easy to see how points (and fines) may build quickly!
Our Making Tax Digital specialists have been working hard to put processes in place to help manage the changes. Our dedicated team have been researching the most suitable software solutions and how we can ease the transition. We’ll be holding a special MTD seminar on Wednesday 5th November to give you an overview of what is changing and what you need to do to ensure you’re prepared for April 2026. The seminar is completely free to attend and will be a great opportunity to ask any questions you may have. Simply register online and join us at Trowbridge Rugby Club from 8am on Wednesday 5th November.
If you’re already a client of Gooding Accounts the team will be in touch to let you know if we think you might be affected by Making Tax Digital (changes to the way tax returns are submitted.) We’ve put together a list of Frequently Asked Questions to help put your mind at ease . Our client managers will be arranging meetings with all affected clients to ensure you’re set up on HMRC recognised software and prepared ahead of the April 2026 changes.
Our dedicated personal tax team have been working diligently to ensure that we’re ready to give sole traders and landlords across Wiltshire the very best advice on Making Tax Digital (MTD) to help guide you smoothly through the upcoming changes. If you’re thinking about coming onboard we offer a free, no obligation meeting and proposal tailored to you specific requirements.
Our friendly and helpful approach to accountancy, ensures that you understand and are in tune with your finances. Our committed team will communicate with you every step of the way so that you understand the position of your financial affairs – get in touch today.
