Making Tax Digital for Income Tax

The biggest change in self-assessment in a generation has already started. From this April, anyone earning more than fifty thousand pounds from self-employment or rental income has to report tax under Making Tax Digital for Income Tax. The threshold drops to thirty thousand in twenty twenty-seven, and twenty thousand the year after. This video explains what’s actually changing: four quarterly digital updates instead of one annual return, plus a final declaration each January. It covers what counts as qualifying income (gross, not profit, and combined across all sources), the two things every taxpayer needs in place, namely MTD-compatible software and digital records of every transaction, and the new points-based penalty regime that replaces the old fines. The good news for clients: it’s exactly the kind of work an accountant can take off their plate.