What does it mean for you?
You will be required by law to use what is termed ‘compatible software’ to:
- Keep and retain transaction-level (income and expenses) digital records for each self-employment and/or property business.
- Submit quarterly update reports of your year-to-date transactions for each self-employment and/or property business to HMRC.
- Finalise your end-of-year position by providing details of your other personal income sources, making adjustments, claiming reliefs and submitting your digital tax return to HMRC.
Starting with the 2026/27 tax year, this process will replace your annual self-assessment tax return.
What is compatible software and is HMRC providing it?
HMRC will not be providing software, but it’s important to note that the new requirements may not necessarily require a change in the systems that you are currently using. If changes are required to ensure your systems are compliant, various types of MTD-compatible software will be available.
What are the next steps?
We understand that there is a lot to take in so join us at our seminar where our tax expert, Kate Brown, will guide you through the MTD for IT arena and will explain what you will be required to do, how to do it and by when.
