January will be here before you know it, so it is time to start thinking about your tax return. Let’s look at what you should know about Making Tax Digital.
What is Making Tax Digital?
Making Tax Digital is the government scheme to make tax reporting fully digital. If you are registered for self assessment and your income from property or self-employment exceeds £20,000 for the 2026-27 tax year, you will be required by law to start using the service for your tax returns.
If you don’t yet have one, we highly recommend finding Worcester accountants to assist you with your accounts. Worcester accountants can also assist you as you move over to the new system.
Are you exempt from Making Tax Digital?
Even if you meet the above criteria, you could still be exempt from Making Tax Digital. Examples include if it is deemed unreasonable for you to use the software, if you are a trustee or personal representative completing a tax return, or if you have a non-resident company. Those who do not qualify to use the service must continue to report their income by doing a self-assessment tax return.
How can you check whether Making Tax Digital is for you?
You can check whether you qualify to use Making Tax Digital by visiting the GOV.UK website and answering some questions. Alternatively, you can find the information you need via your personal accountant or in emails sent by HMRC.
You could be prosecuted if you do not declare your income through self-employment accurately and honestly.