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 already have registered for Making Tax Digital and filed your first quarterly submission with HMRC. From April 2027 HMRC will expand the mandatory requirement to sole traders and landlords with a total turnover of more than £30,000.
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 – this submission is not a full tax return but a digital summary of your business or property income and expenses. 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 deadlines for those with a total turnover of over £30,000 Making Tax Digital will be compulsory from April 2027 with the deadlines as follows:
| Update deadline | |
| 6 April to 5 July 2027 | 7 August 2027 |
| 6 April to 5 October 2027 | 7 November 2027 |
| 6 April to 5 January 2028 | 7 February 2028 |
| 6 April to 5 April 2028 | 7 May 2028 |
The second key change is that, once you are required to join Making Tax Digital (MTD), the only way to submit your Self Assessment tax return to HMRC will be through approved software.
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!
From September 2026 if you should have already registered for Making Tax Digital and haven’t done so, HMRC will begin to automatically sign up taxpayers. HMRC believe that there are still more than 250,000 taxpayers that should have submitted their first quarterly submission on 7th August 2026 but have failed to do so. They have confirmed that these taxpayers should look out for a digital communication or a letter explaining what will happen next.
Our Making Tax Digital specialists have been working hard to put processes in place to help manage the changes. For those clients affected from April 2026 we have already completed the first round of MTD submissions in August, giving us valuable experience of the new process and how we can support you through the changes.
Our MTD specialist and chartered accountant, Danielle, will be running FREE introductory seminars for those who will be required to sign up to Making Tax Digital from April 2027. She’ll discuss what the changes mean for you, and give an outline of your legal obligations. Sessions are open to all Wiltshire businesses (you don’t have to be a client to come along) and a complimentary breakfast roll plus tea and coffee is provided. Our next seminar is at Gooding Accounts’ White Horse Business Park office in Trowbridge on Thursday 12th November from 8:00am.
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. We’ve put together a list of Frequently Asked Questions to help put your mind at ease.
Our dedicated personal tax team have been working diligently to ensure that we’re giving sole traders and landlords across Wiltshire the very best advice on Making Tax Digital (MTD) to help guide you smoothly through the 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.
