🔔 Major MTD Changes Coming: Are You Ready for Digital Self-Assessment?

From April 2026, self-employed individuals and landlords earning over £50,000 will face a big shift in how they report their taxes. And just a year later, in April 2027, this will extend to those earning £30,000 or more. These new rules are part of HMRC’s Making Tax Digital (MTD) initiative — a digital-first transformation of the UK tax system.
So, what does this mean for you — and why is it so important to act now?

📌 What is Making Tax Digital (MTD) for Income Tax?
Making Tax Digital is HMRC’s ongoing initiative to modernise the UK tax system. Under this scheme, certain taxpayers will no longer be able to submit one annual Self Assessment return. Instead, they must:
✅ Keep digital records of all business and property income and expenses
✅ Use MTD-compatible software to submit updates every quarter
✅ File a final end-of-year declaration digitally
The goal? More accurate, timely reporting — but also greater burden for those unprepared.

🧠 Who Is Affected?The upcoming changes apply to:

• Self-employed business owners
• Landlords with rental income
• Individuals with combined self-employment and property income

If your total gross income from self-employment or property exceeds:

• £50,000 from April 2026
• £30,000 from April 2027

Then you must comply with MTD for Income Tax.
Still unsure if you fall into this category? -  Call Tax Affinity for a free eligibility check.

⏰ Why You Should Act Now
The transition to MTD won’t be a simple software upgrade. It requires a complete rethink of your record-keeping and ongoing reporting habits.
Without expert support, you risk:
❌ Missed deadlines
❌ Incorrect submissions
❌ Hefty HMRC penalties
Don’t let poor preparation cost you money — or your peace of mind.

💼 Why Choose Tax Affinity Accountants?
At Tax Affinity, we’re not just accountants — we’re digital tax transformation specialists. As the MTD deadline approaches, we offer:
🛠️ Full MTD Setup & Software Integration
📚 Real-time bookkeeping solutions
📅 Quarterly updates submission on your behalf
🧾 Expert tax advice tailored to landlords and sole traders
📞 Unlimited support with a dedicated personal accountant
With over 20 years' experience helping individuals and businesses stay compliant, we’re your trusted partner in the digital tax era.

💡 What Sets Us Apart?✔️ Transparent, fixed pricing
✔️ Tailored MTD packages — no “one size fits all”
✔️ Local, friendly, and jargon-free support
✔️ Recognised MTD-ready by HMRC
✔️ 5-star rated across Google, Trustpilot, and Facebook
Thousands already trust us — it’s time you did too.

📣 Take the Next Step — Before It’s Too Late
The longer you wait, the harder the transition becomes. But with Tax Affinity by your side, it’s easy, stress-free and fully HMRC-compliant.
👉 Book your free MTD readiness consultation today
📞 Call us or click here to fill our contact form on our website
🌐 Visit: www.taxaffinity.com

🛡️ The Bottom Line
MTD is not just another box to tick. It’s a major change in how you manage your finances. The good news? You don’t have to face it alone.

Tax Affinity Accountants are here to make it easy, affordable, and penalty-free. Don't settle for guesswork — partner with the experts.

👉 Switch to Tax Affinity today — before the rush hits. You'll be glad you did.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

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#MakingTaxDigital #MTDforIncomeTax #SelfAssessment2026 #SelfEmployedTax #LandlordTaxUK #HMRCMTD #DigitalTax #UKTaxChanges #MTDHelp #TaxAffinityAccountants #TaxComplianceUK #MTDExperts #MTDDeadline #MTD #TaxAffinity #contractoraccountant #contractors #consultant #contractor #consultants

On 6th March 2024 the UK Chancellor announced the Spring Budget for the UK. There were quite a few positive changes and the main points to help plan ahead are below:

Child Benefit Changes
Starting April 2024, parents will receive Child Benefit as follows: £25.60 per week (£1,331 annually) for the eldest child and £16.95 per week (£881 annually) for additional children.
Presently, if either parent's income exceeds £50,000, the High Income Child Benefit Charge (HICBC) takes effect, requiring repayment of Child Benefit once income surpasses £60,000. This necessitates completing a self-assessment tax return.

As of April 6, 2024, the threshold rises to £60,000 with a gradual taper, fully recouping Child Benefit when income exceeds £80,000. By April 2026, the clawback assessment will shift to a "household income" basis, pending HMRC adjustments.

The 2024 threshold increase will lower the combined tax rate (HICBC, income tax, and NIC) on incomes above £60,000, encouraging parents to earn more. Eventually, transitioning to a "household income" basis should create fairer outcomes for families, albeit HMRC implementation challenges may arise.

Changing the Non-Domiciled (non-dom) status and tax treatment
The government plans to end the current tax treatment for UK resident non-domiciled individuals (non-doms) starting April 6, 2025. This regime, in place for over 200 years, allowed UK residents with permanent homes abroad to avoid UK tax on foreign income and gains (FIG) unless brought into the UK. It also shielded non-UK assets from Inheritance Tax.

As of April 6, 2025, the current remittance basis will be replaced by a new residence-based test lasting four years for those who have been non-UK residents for at least the prior ten tax years. During this period, newcomers won't pay tax on foreign income or trust distributions brought into the UK. However, they'll lose personal allowances and CGT exemptions.

After four years, individuals will be taxed like other UK residents on worldwide income and gains.
Transitional rules apply: non-doms moving from remittance to arising basis in 2025/26 will be taxed on 50% of foreign income; reduced rates for pre-6 April 2025 FIG remittances till 2027; and Capital Gains Tax rebasing for non-UK assets. Business Investment Relief continues.
From April 6, 2025, settlor-interested trusts lose tax protection unless they qualify for the four-year FIG regime. Overseas workday relief remains for the first three years, depending on opting into the new regime.

Inheritance Tax shifts from domicile to residence-based from April 6, 2025, with assets within ten years of UK residency potentially liable. UK sited assets remain subject to IHT.
These changes simplify the non-dom tax system, but complexities persist. Transitional provisions offer time for adjustment. Current non-doms should consult their Tax Affinity adviser promptly as these are significant changes.

National Insurance
Class 1 Changes (Employed)
Starting from an annual income of £12,570 up to £50,270, employees pay Class 1 National Insurance Contributions (NICs). The rate is currently 10% (down from 12% since January 6 this year). Above £50,270, the rate remains 2% for additional earnings.
From April 6, 2024, the main rate will decrease by another 2% to 8%, potentially saving employees up to £63 monthly (£754 yearly). Employers' NICs, at 13.8% over the lower threshold, remain unchanged.

This reduction benefits employees and may ease pressure on employers regarding wage hikes.

Self-Employment Changes
Self-employed individuals pay Class 4 NICs from £12,570 to £50,270 at 9% (dropping to 8% from April 6, 2024). Above this threshold, the rate stays at 2%.

Starting April 6, 2024, the rate decreases by another 2% to 6%. This saves £30 for every £1,000 of profit, up to £1,131 annually for those paying at the main Class 4 NIC rate. Class 2 NICs were abolished from April 6, 2024, offering a positive financial change for the new tax year.

Capital Gains Tax
When you sell residential property and make a profit, you might owe Capital Gains Tax (CGT), except when it's your main home, which is CGT exempt. If the property wasn't always your main home, only part of the gain is taxable.

Currently, residential property gains are taxed at 18% for basic rate band profits and 28% thereafter. Starting April 6, 2024, the higher rate reduces to 24% for property sales.
Reporting the sale within 60 days from completion is crucial. Sales exchanged before April 6, 2024, may still be taxed at 28%.

Landlords affected by the abolishment of Furnished Holiday Lets tax benefits from April 2025 will see changes. From April 6, 2025, furnished holiday lettings will be treated as property investment businesses, losing several tax benefits:

• Interest on loans for furnished holiday lettings will no longer be deductible but will receive a 20% tax credit.
• Capital gains will be subject to CGT rates, losing business asset disposal relief.
• CGT rollover relief and capital allowances will be withdrawn.
• Tax relief for pension contributions may require adjustments.

These changes impact property owners and landlords, requiring careful consideration and possibly seeking advice.

Investments
The Budget introduced measures to encourage individual investing and foster a stronger savings culture. Here are the key points:

1. UK ISA Consultation:
   • The government is considering a new UK ISA with a £5,000 allowance, in addition to the existing £20,000 allowance.
   • The consultation, open until June 6, 2024, seeks input on defining eligible investments for the UK ISA.
   • ISAs offer tax-free savings, potentially benefiting higher earners amidst frozen tax thresholds.
2. NS&I British Saving Bond:
   • NS&I will launch a British saving bond in early April 2024, offering a fixed interest rate for three years on investments ranging from £500 to £1 million.
   • Investors can choose between growth bonds and income bonds, each with different tax implications.
   • Bonds from NS&I are backed by HM Treasury.
3. NatWest Share Sale:
   • The government plans to sell part of its NatWest shareholding directly to individual investors, aiming for full divestment by 2025/26.
   • The sale may occur this summer, subject to market conditions.

It's advisable to seek independent investment advice before making any investment decisions.

VAT threshold increased
The government is raising the VAT registration threshold from £85,000 to £90,000 and the deregistration threshold from £83,000 to £88,000. These changes start on April 1, 2024. Over 28,000 businesses are expected to benefit by no longer needing to register for VAT in 2024-25.

Conclusion
Overall this is a much better budget than the previous autumn one presented in 2023. VAT announcement is decades overdue and the drop in NI thresholds don't make that much of a real world difference when price rise percentage is way higher then the percentage drop. And again the goverment did not address any of the large multinationals raking huge profits while small businesses and the public suffer. The sale of Natwest shares in a recession (that the government used tax payers money to bail out the bank recently) needs to be critically analysed more closely as to the effective timing of the sale and real time benefit for tax payers who directly paid for this out of their pockets. At times like these its even more important to have an experience and knowledgable tax accountant in your corner.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Tax Affinity Accountants are rated as experts in Tax and Accounting Industry and because of our experience and expertise with Tax we can help clients to both legally minimise their tax and make the best plans for the future.

We never recommend breaking any rules but instead using our expertise know that there is more than enough scope with the framework to legally reduce taxes and still have the peace of mind. And because we stay abreast with the latest changes and developments we are are always at the forefront of advising clients when things change.

And you know your in safe hand because Tax Affinity are experts in tax law with a good working relationship with HMRC. There to there to help and support clients if they are involved in a HMRC tax or VAT investigation or have a Worldwide Disclosure / Let Property Campaign letter etc to respond to. We are always able to successfully support and guide clients to the best possible outcome. Just ask one of our many happy clients who sing our praises.

Below is a list of just some of the things we can help with. If what your looking for is not listed we most likely are still able to do it but just didnt want to make the list too long.

Give us a call and have a chat with one of our tax experts or come into one of our high street branches - we will be happy to help.

-          Inheritance tax planning for landlords with estates between £1million - £250million
-          Capital gains tax planning
-          Transferring properties into a limited company - Incorporation
-          Offshore tax planning
-          HMRC Tax and VAT Investigations
-          Code of Practice 8 and 9 investigations
-          Alternate Dispute Resolution
-          Tax Tribunals
-          Forensic Accounting
-          Worldwide Disclosure Facility
-          Let Property Campaign
-          HMRC Check of Self Assessment / Tax
-          Contractual Disclosure Facility (CDF)
-          Code of Practice 8 / 9 / 11 / 14
-          Section 144 Enquiry
-          Section 12A TMA 1970 Notice Investigations
-          Code of Practice 11 (Local Compliance Offices)
-          Code of Practice 14 Investigation (Company Tax Return Investigations)

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.