You might have heard about Making Tax Digital (MTD) – it’s a new system from HMRC that will require many self-employed people and landlords to keep digital records and send updates to HMRC every quarter using special software (instead of just doing one tax return a year).

Although the Spring Statement didn’t focus on tax, there were some key updates to MTD that you should know about:

  • MTD will apply to people earning over £20,000 from April 2028.
  • If you earn under £20,000, you’re not included just yet – but the government is looking at how to bring more people in later.
  • Some people will be exempt or delayed, such as those with power of attorney, ministers of religion, and non-UK residents with special tax rules.
  • HMRC has confirmed they will not provide their own system to file the year-end return – so you’ll need software that can handle everything.
  • Not all software on HMRC’s list can do this, so it’s important to choose the right one.

⚠️ If you’re already a client with us – don’t worry. We’ll be in touch closer to the time with everything you need to do.
✅ If you’re a limited company and already VAT registered, you don’t need to do anything – this change only affects individuals (like sole traders and landlords) who aren’t already in MTD for VAT.

We’ll keep you updated as things develop. As always, if you have any questions, just get in touch.

Thanks,
Steve