We are committed to delivering the highest level of professional competence and expertise at a cost effective price. Whether you are a company, partnership, sole trader or a sub-
Please feel free to visit or contact us during the following times:
Monday-
*Please contact us if you require an out of hours appointment
9AM to 5PM
© 2024 Branagans Accountancy Services Ltd | Company Number: 5965462 | VAT Number: 917 8490 87
BRANAGANS
Accountancy Services Ltd
01709 327 215 | info@branagans.co.uk
The Making Tax Digital (MTD) regime is soon extending to income tax, with self-
From April 2026, any self-
Even though the first sign-
If you earn less than £30,000 you can still sign up for the scheme voluntarily, but you will not be forced to join in these early stages. But there might still be some benefits to signing up early. Currently, HMRC is running a testing phase to find out how to make the expansion of MTD work best for the self-
It will also help you to get to grips with the new system before you are obliged to use it, so you feel more confident in everything you need to do before the April 2026 or deadlines arrive.
You will also have access to a dedicated customer support team as an early adopter, who will help you understand and resolve any issues you have with filing under the new regime. Plus, you and your accountant would be supported through the process for your other tax affairs -
Around 780,000 people are expected to qualify to join the first phase of this round of MTD. The aim for HMRC is to improve record keeping, as you must file quarterly, and everything will be held digitally which should also reduce the number of errors on your taxes.
If you want to join up in this phase, then please contact your accountant and they can help you. They can sign up as many of their eligible clients as they want to, and this is the best way to access the new regime as you then have the backing and help of an expert to guide you through any problems. But if you want to sign up separately, you can do that providing you're eligible.
To be eligible, there are various rules and regulations, so you need to check if any of them apply to you. These details are outlined on the Gov.uk website:
You can sign up voluntarily if (all the following):
You can also use an accounting period that runs from 1 April to 31 March, if the software you choose supports this. To use this accounting period, you must:
If you sign up, during testing you will not be able to:
You cannot sign up voluntarily if you:
Source: Gov.uk.
There are many different types of software you can use to file digitally online, and some do not charge you to use them. But it isn't as easy as just signing up to any software as which will suite you best will depend on what data you need to hold, how simple your tax affairs are, and how tech savvy you are.
All of the compatible software options can be found on Gov.uk, and while there are a few that are currently working, many more are being developed by some of the biggest names in online accounting. Again, you can ask your accountant for guidance on which would work best for you if you are unsure.
The new regime will mean more admin for those joining up, and collectively for everyone who is eligible and is earning more than £30,000, the cost of implementing the new regime is expected to be £561m as a one-
There are many aspects of the changes to the MTD regime that you may not feel comfortable with, but if you have any queries then please get in touch with us on 01709 327 215 or via email at info@branagans.co.uk.