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Updates: Use Making Tax Digital for Income Tax

2025

3 April 2025 published amendments

Introduction

Information has been updated on when sole traders and landlords must use Making Tax Digital based on qualifying income thresholds (拢50,000+, 拢30,000+, and 拢20,000+). An explanation of qualifying income and what is not included, and early sign up options, have been added.

Signing up鈥�

This section has been renamed from 'Before you sign up' to 'Signing up' and restructured with clearer information about roles and responsibilities for both individuals and agents. This section now further explains agent services account requirements, software considerations, and authorisations.

After you sign up

This section has been restructured to clarify how to access the Making Tax Digital service through HMRC online accounts for both individuals and agents. Account features have been expanded to include claiming refunds, adjusting payments, and viewing refund status. Customer support team details have been moved to the 'Help and support' section.

Create digital records

Information has been added about the records you need to keep, when you need to keep them, the specific requirements for those records, and how to categorise your records if you are a landlord that jointly lets a property. Information about what you need to record in your digital records has been clarified. Information about what you need to do to correct your digital records has been added.

Send quarterly updates

Information has been added to explain what will be sent to HMRC in your quarterly updates and that you will not need to resend quarterly updates separately if you have made an adjustment. Information about sending updates more frequently than every quarter and how long before the end of an update period you can send an update if you know you will be receiving no income for the rest of that period. Information for landlords that jointly let properties has also been added.

Adjust your business income

Information around adjusting category totals has been updated to clarify examples for accounting adjustments if you use traditional accounting. Information about how to claim trading or property allowance in your records has been clarified and what you will need to do in your software if you have a capital allowance claim has been added.

Finalise your Income Tax position

Information about what happens after you have submitted your tax return has been clarified.

If your circumstances change

Information on 鈥榃hat to do if you sign up during the tax year鈥� has been added (previously in 鈥業ntroduction鈥�) explaining options for catching up with digital record-keeping and quarterly updates when joining the service mid-year.

Help and support

Information has been restructured to clarify support options for those who are signed up and those who are not signed up. Details about the dedicated customer support team (previously in 鈥楢fter you sign up鈥�) have been moved to this section. Links to improved step-by-step guides for individuals and agents have been added to help users understand how to use Making Tax Digital for Income Tax in the correct order.

15 January 2025 published amendments

Finalise your Income Tax position

Guidance updated to explain it's not possible to use HMRC online services for the remainder of the 2024 to 2025 tax year and the upcoming 2025 to 2026 tax year, and to advise users what to do if the software they currently use does not support the submission of personal income sources.

9 January 2025 published amendments

If your circumstances change

New section added.

2024

27 November 2024 published amendments

Introduction

Information has been added on how to catch up with your digital records and quarterly updates during the tax year.

Create digital records

Information has been added on how to catch up with your digital records and quarterly updates during the tax year.

Send quarterly updates

Information has been added on how to catch up with your digital records and quarterly updates during the tax year.

8 October 2024 published amendments

Introduction

Updates to the guidance to remove out of date information about Making Tax Digital for Income Tax.

Before you sign up

This section has been retitled and the information has been updated on what you should do and expect before signing up.

After you sign up

New section added.

Create digital records

Information about records you can choose to keep digitally has been updated.

Send quarterly updates

Information updated to confirm what you need to do if you want to change from calendar update periods to standard update periods.

Finalise your Income Tax position

Information updated to confirm you must send HMRC information on personal income sources before you make your final declaration.

Help and support

Updates to the guidance to reflect current support available for those who have and have not yet signed up to Making Tax Digital for Income Tax.

16 August 2024 published amendments

Create digital records

Information has been updated to confirm if you need to keep digital records of personal income sources that you report through Self Assessment and when you should start creating your digital records.

22 April 2024 published amendments

Introduction

First published.

Get started

First published.

Keep digital records

New section added.

Send quarterly updates

New section added.

Make any adjustments to your business income

New section added.

Finalise your income tax position

New section added.

Help and support

First published.