News Feed

---

Making Tax Digital for Income Tax will apply to sole traders and landlords with qualifying self-employment and/or property income above the relevant threshold.

Under the rules, affected individuals will need to keep digital records and use MTD-compatible software to send quarterly updates to HMRC and submit their tax return information.

The phased start dates are currently:

From 6 April 2026 — qualifying income over £50,000

From 6 April 2027 — qualifying income over £30,000

From 6 April 2028 — qualifying income over £20,000

Qualifying income is based on total gross income from self-employment and property, before expenses. HMRC will use information from tax returns to decide when someone needs to join.

Partnerships are expected to be brought into MTD for Income Tax in the future, but HMRC has not yet confirmed the timetable.

For more information, visit:

https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax

Under Making Tax Digital for Income Tax, sole traders and landlords in scope must keep digital records of their self-employment and/or property income and expenses using compatible software. 

The software is then used to send quarterly updates to HMRC. These updates are summaries of income and expenses — they are not full tax returns. 

Quarterly updates are due every 3 months. For the standard tax year quarters, the deadlines are:

6 April to 5 July — due by 7 August

6 July to 5 October — due by 7 November

6 October to 5 January — due by 7 February

6 January to 5 April — due by 7 May

After the end of the tax year, the individual will still need to finalise their tax position and submit their tax return information through MTD-compatible software by 31 January, which remains the deadline for submitting the tax return and paying any tax due. 

MTD does not change the tax rules or the amount of tax due, but it does change how records are kept and how information is reported to HMRC. It is therefore important to have suitable software and good bookkeeping processes in place before the relevant start date. 

You may have to pay the High Income Child Benefit Charge if you or your partner receive Child Benefit and either of you has adjusted net income of more than £60,000 in the tax year.

The charge can also apply if someone else claims Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep. The child does not have to be your own.

Adjusted net income is your total taxable income before Personal Allowances, less certain tax reliefs such as pension contributions and Gift Aid.

For 2024/25 onwards, if your adjusted net income is between £60,000 and £80,000, you will repay 1% of the Child Benefit received for every £200 of income over £60,000. If your adjusted net income is £80,000 or more, the charge will equal the full amount of Child Benefit received.

If both you and your partner are over the threshold, the person with the higher adjusted net income is responsible for paying the charge.

You can choose to receive Child Benefit and pay any charge due, or claim Child Benefit but opt out of receiving payments. Claiming can still be important because it may help protect your National Insurance record and ensure your child receives their National Insurance number automatically before they turn 16.

For more information, visit:

https://www.gov.uk/child-benefit-tax-charge

Tax-Free Childcare can help working families with the cost of approved childcare. 

For every £8 you pay into your online childcare account, the government adds £2. 

You can receive up to £500 every 3 months for each child, up to £2,000 per year. If your child is disabled, this increases to up to £1,000 every 3 months, up to £4,000 per year.

The money can be used to pay approved childcare providers, such as registered childminders, nurseries, nannies, after-school clubs, play schemes and holiday clubs. Your childcare provider must be signed up to the Tax-Free Childcare scheme before you can use the account to pay them.

Eligibility depends on your circumstances, including whether you are working or returning to work, your income and your partner’s income if applicable, your child’s age and circumstances, and your immigration status. 

You will usually need to expect to earn at least the equivalent of 16 hours a week at the National Minimum Wage or National Living Wage over the next 3 months. You will not be eligible if you or your partner expect to have adjusted net income of more than £100,000 in the tax year.

You must reconfirm your eligibility every 3 months to continue receiving Tax-Free Childcare.

To find out more or apply, visit:

https://www.gov.uk/tax-free-childcare

Companies House is introducing new identity verification rules as part of wider changes to improve corporate transparency and reduce economic crime. 

This means that company directors and people with significant control will need to confirm their identity with Companies House. 

The process is intended to make sure that the individuals setting up, running or controlling UK companies are who they say they are. 

Existing directors and PSCs will have a transition period to complete the checks, while new appointments will need to meet the requirements from the relevant start date. 

We will provide further guidance as the deadlines approach and can help you understand what action is needed for your company.

 Companies House is introducing changes to accounts filing from April 2028. 

Small companies and micro-entities will need to file a profit and loss account as part of their annual accounts, although Companies House has indicated that there will be an option to prevent the profit and loss account from being published publicly.

All companies will also need to file accounts using commercial software, as paper and web filing routes are expected to close.

For clients, this means bookkeeping records will need to be accurate, up to date and ready for software filing. 

It may also mean that more financial information is submitted to Companies House than clients have been used to, so planning ahead will be important.