HMRC issued an update on Monday
HM Revenue and Customs (HMRC) has issued an alert to self-employed people who earn above a certain threshold, urging them to “get ready” as the financial year draws to a close. Those affected will need to adopt the “Making Tax Digital for Income Tax” system.
In a post on X on Monday, HMRC advised: “Self-employed and earn over £50k? Get ready for Making Tax Digital. You’ll keep digital records, receive helpful prompts, and submit quarterly updates. Gaining more confidence and control in your numbers to save time at year-end.”
According to additional details on Gov.uk, those who are registered for Self Assessment and have income from self-employment or property – or both – with a qualifying income exceeding £30,000 must use this service.
The guidance also states that from next year, if you’re registered for Self Assessment and have an income from self-employment and/or property before April 6, 2025, and “have a qualifying income of more than £50,000 in the 2024 to 2025 tax year”, you’ll be required to use the service.
The advice further notes: “You need to submit your Self Assessment tax return for the 2024 to 2025 tax year by 31 January 2026. We will review your return and check if your qualifying income is more than £50,000.”
“If it is, we will write to you and confirm that you must start using Making Tax Digital for Income Tax by 6 April 2026. If you have an agent, they can do this on your behalf.
“You or your agent must find software that works with Making Tax Digital for Income Tax and authorise it. You or your agent must sign up for Making Tax Digital for Income Tax.”