Making Tax Digital is a HMRC led process effecting sole traders/self employed and landlords who are within the below thresholds:
 

Thresholds: 

Gross income: Income before expenses or taxes are deducted from sole trader business' or property rental income or a combination of the two.

• From 6 April 2026, their gross income from these sources totals over £50,000
• From 6 April 2027, their gross income from these sources totals over £30,000
• From 6 April 2028, their gross income from these sources totals over £20,000

Requirement: 

Those effected will have to make a return detailing each transaction via compatible software or via a compatible bridging tool:

Quarterly updates/returns:

1st Update: By 7th August (covering transactions 6th April to 5th July) 

2nd Update: By 7th November (covering transactions 6th July to 5th October)

3rd Update: By 7th February (covering transactions 6th October to 5th January) 

4th Update: By 7th May (covering transactions 6th January to 5th April)

Annual year end return (by 31st January following - no change)

Details of the transactions:

Each transaction requires the below:

- Amount

- Date of transaction

- Tax Category - these are the specific HMRC categories e.g: turnover, car/van expenses, wages and costs of goods bought for resale.

When is tax paid:

Currently, there is no change to when tax will be paid, ie: payment on accounts will still operate but the quarterly returns will not trigger a tax payment event.

Services offered:

Nathan Kemp will provide a full book keeping service/bridging service or a filing service - what ever the client requires.