Weds 21st May 2025
Starting in the 2026/27 tax year Making Tax Digital will extend beyond VAT returns and start to impact Sole Traders and Rental Businesses. The eligibility will be determined on total income across all relevant income streams, and the roll out will be staged as follows:
- April 2026 – over £50K turnover
- April 2027 – over £30K turnover
- April 2028 – over £20K turnover
Quarterly submissions will need to be made to HMRC, which should have the beneficial effects of making ongoing recording of income and expenditure more efficient, and ensuring your tax bill is more predictable. It is also likely to mean the type of work undertaken by bookkeepers and accountants moves away from day-to-day record keeping and towards advice, verification and submission.
David highly recommended that all businesses likely to be affected by this utilise accounting software such as Sage, Quickbooks, Xero, Free Agent, etc. For some simple business models, such as rentals, using spreadsheets with appropriate filing software is still an option.
As always, if you want to make those tax worries low, Busbys is just the place to go!
