An easy-to-digest toolkit has been created by an accountancy firm to help businesses understand new income tax reporting criteria.
The Government is introducing its Making Tax Digital (MTD) for Income Tax initiative to self-employed businesspeople and residential landlords from April 2026 as a way of modernising and digitising the current tax reporting system.
However, a survey conducted by IPSE, a not-for-profit membership association dedicated to the self-employed, revealed that 70% of businesses are either unaware of the initiative or don’t realise what it entails.
Saint & Co Chartered Accountants, which operates across Cumbria and Dumfries & Galloway, in Scotland, has launched its Making Tax Digital Toolkit which will allow businesses break down what the legislation means for them.
The Toolkit consists of:
- A designated page on its website, saint.co.uk;
- A downloadable informative and engaging factsheet containing key information about MTD;
- A downloadable checklist people can update when they meet certain requirements;
- A downloadable list of MTD-compliant reporting software including recommendations;
- A brief video explaining everything people need to know about MTD.
Lindsay Farrer, a Partner at Saint & Co, said: “Making Tax Digital for Income Tax is a major initiative which will impact potentially millions of self-employed businesspeople and landlords across the UK, and it is worrying to see the results of an IPSE survey that a large percentage of those are unaware of the implications of the changes.
“The MTD Toolkit will provide people with easy-to-understand information and highlight that help is at hand if they are struggling to get their heads round it all.
“By providing the downloadable assets and video, we want all those who will impacted by MTD to know exactly what is required from them and why it is crucial they become compliant to avoid any penalties.
“The HMRC initiative is coming in from April 2026 and preparation ahead of it being rolled out is key, so people really need to be up to speed with all requirements.”
MTD will require sole traders and landlords to keep digital records of income and expenses using compliant accounting software approved by HMRC, submit quarterly reports to HMRC instead of yearly and file and End of Period Statement and annual declaration.
Those with a gross income – or annual turnover – of over £50,000 will need to comply with the legislation from April 2026. The threshold will decrease to £30,000 in April 2027 and to £20,000 in April 2028.
Alex Dent, the Head of Tax at Saint & Co, said: “Businesses should seek the help of their accountants if they are struggling to understand the implications of the rollout of MTD as they will be able to provide guidance on everything from when reports need submitting right through to which software they should be using.
“The Toolkit we have produced will be of great help to those who aren’t aware of what MTD means for them, and we can provide further assistance to make sure they don’t fall foul of the legislation.”
Saint & Co’s Making Tax Digital Toolkit can be accessed at www.saint.co.uk/tax-specialisms/mtd
Saint & Co has offices across in Carlisle, Ambleside, Cockermouth, Penrith, Whitehaven, Wigton and Millom in Cumbria, and in Annan, Castle Douglas and Dumfries in Dumfries & Galloway.
