Latest news with #CraigOgilvie
Daily Mirror
22-05-2025
- Business
- Daily Mirror
HMRC confirms exact date huge change to income tax will start and what it means
From April next year, taxpayers earning over £50,000 from self-employment or property income will need to comply with new Making Tax Digital (MTD) for Income Tax rules A major tax change will be introduced next year, affecting thousands of Brits. HMRC has confirmed that the next phase of the rollout for Making Tax Digital (MTD) will go ahead on April 6, 2026. From this date, taxpayers earning over £50,000 from self-employment or property income will need to comply with new MTD for Income Tax rules. This is a new system for recording and reporting income and expenses, and all businesses' records will need to be kept digitally, and you will need to file quarterly updates on your earnings to the tax office. The move is expected to affect approximately 780,000 people in its first wave. The next wave will be introduced from April 2027 for those earning between £30,000 and £50,000, with another 970,000 people affected. A further expansion to those earning £20,000 will be introduced from April 2028 under the current plans. According to HMRC, the change is designed to improve accuracy, reduce errors, and save time. They believe the digital transition will help taxpayers stay on top of their obligations while offering a clearer picture of their tax position year-round. HMRC is currently encouraging early adopters to join the Making Tax Digital testing programme, which the tax office says will give people extra time to familiarise themselves with the new system and access dedicated support. Making Tax Digital has already been rolled out for VAT and has reportedly helped over two million businesses reduce errors and increase efficiency. A 2021 report found that 69% of businesses saw at least one benefit, with 67% reporting fewer record-keeping mistakes. Last month, James Murray MP, Exchequer Secretary to the Treasury, said: "MTD for Income Tax is an essential part of our plan to transform the UK's tax system into one that supports economic growth. By modernising how people manage their tax, we're helping businesses work more efficiently and productively while ensuring everyone pays their fair share. 'This is a crucial step in this government's decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.' Join Money Saving Club's specialist topics For all you savvy savers and bargain hunters out there, there's a golden opportunity to stretch your pounds further. The Money Saving Club newsletter, a favourite among thousands who thrive on catching the best deals, is stepping up its game. Simply follow the link and select one or more of the following topics to get all the latest deals and advice on: Travel; Property; Pets, family and home; Personal finance; Shopping and discounts; Utilities. Craig Ogilvie, HMRC's Director of Making Tax Digital, said: "MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997. It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax. "By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year.'
Yahoo
16-05-2025
- Business
- Yahoo
HMRC set to introduce 'biggest' tax challenge for people who earn over £50,000
HMRC's Making Tax Digitalhas been named the 'biggest challenge' of the next 12 months with thousands at risk of future fines. Making Tax Digital for income tax is expected to be implemented for all self-employed people earning over £50,000 by next April. Just 3% of self-employed people are currently using the required third-party software to submit their tax returns, demonstrating how significant the shift will be over the next year. A new survey by accounting conference and expo Accountex London has found that 4 in 5 accounting professionals think MTD for income tax is the 'biggest challenge' of the next 12 months. READ MORE: UK tourists in Tenerife and Gran Canaria warned as protesters say 'we will not stop' READ MORE: DWP announces exact month bank account checks will begin for three benefits READ MORE UK tourists warned as people 'abandon' Majorca and 'can't take it anymore' Craig Ogilvie, Director of Making Tax Digital at HMRC said: 'With April 2026 on the horizon, we are issuing letters to customers we believe will be mandated, outlining specific requirements and timelines. We urge those who meet the mandation criteria to join our testing programme on now to help shape the final service and make your transition smoother.' Clive Barnett, External Readiness Lead, HMRC: 'Joining our MTD for Income Tax testing phase now gives businesses and agents hands-on experience before April 2026. Participants can prepare for this significant change with benefits such as dedicated support and penalty-free quarterly submissions. 'HMRC is making sure our marketing, communications and product launches all align to ensure there's a package of support around during the testing period and the long-term adoption to help people make the right choices for their business and clients.' Eriona Bajrakutaj, founder of Volt Digital Transformation, explains that MTD implementation will require further communication with clients, potentially requiring firms to hire more accountants. Eriona said: 'If you do not implement digital systems, you will need the extra capacity because we're now going to see clients five times a year. I think managing client expectations will be a big challenge because it means clients will need to reframe their business model to ensure it can report in a digital format. But clients can actually be trained quite easily. The biggest push back to be aware of is from your team. If they don't want to go on the digital journey, it will hinder how fast you get there and how well you can service your clients. Try to involve your teams during every step of the process so they can see what you're trying to achieve and know their opinion matters as you transition.'
Glasgow Times
28-04-2025
- Business
- Glasgow Times
HMRC rule changes: Making Tax Digital Self Assessment 2026
This is what it describes as its 'most significant change to Self Assessment since 1997'. Sole traders and landlords are being urged to act now, with one year until Making Tax Digital for Income Tax launches, with eligible taxpayers encouraged to sign up to a testing programme now to get ahead of the changes. A statement from HMRC says: "The launch on April 6 2026 marks a significant and ultimately time-saving change in how these individuals will need to keep digital records and report their income to HM Revenue and Customs (HMRC). "By keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities and in turn, driving economic growth as part of our Plan for Change." Quarterly updates are designed to spread the workload more evenly throughout the year and bring the tax system closer to real-time reporting, avoiding a rush of receipt-filing and paperwork ahead of a January 31 deadline. James Murray MP, Exchequer Secretary to the Treasury, says: "MTD for Income Tax is an essential part of our plan to transform the UK's tax system into one that supports economic growth. 'By modernising how people manage their tax, we're helping businesses work more efficiently and productively while ensuring everyone pays their fair share. 'This is a crucial step in this government's decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.' From April 2026, self-employed people with qualifying income above £50,000 will need to keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC. These digital requirements will help businesses save time through more efficient record-keeping, reduce errors in tax calculations, and provide a clearer picture of their tax obligations throughout the year. Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted. Those with qualifying income above £30,000 will also be required to use MTD for Income Tax from April 2027. The threshold will then decrease to £20,000 from April 2028. The phased introduction of MTD for Income Tax follows the successful implementation of MTD for VAT, which is now used by more than 2 million businesses. An independent report published in 2021 found that 69% of mandated businesses experienced at least one benefit from MTD for VAT, while 67% reported that it reduced the potential for mistakes in their record keeping. Recommended reading: Craig Ogilvie, HMRC's Director of Making Tax Digital, says: "MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997. "It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax. "By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year.'
Leader Live
28-04-2025
- Business
- Leader Live
HMRC rule changes: Making Tax Digital Self Assessment 2026
This is what it describes as its 'most significant change to Self Assessment since 1997'. Sole traders and landlords are being urged to act now, with one year until Making Tax Digital for Income Tax launches, with eligible taxpayers encouraged to sign up to a testing programme now to get ahead of the changes. A statement from HMRC says: "The launch on April 6 2026 marks a significant and ultimately time-saving change in how these individuals will need to keep digital records and report their income to HM Revenue and Customs (HMRC). "By keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities and in turn, driving economic growth as part of our Plan for Change." Quarterly updates are designed to spread the workload more evenly throughout the year and bring the tax system closer to real-time reporting, avoiding a rush of receipt-filing and paperwork ahead of a January 31 deadline. James Murray MP, Exchequer Secretary to the Treasury, says: "MTD for Income Tax is an essential part of our plan to transform the UK's tax system into one that supports economic growth. 'By modernising how people manage their tax, we're helping businesses work more efficiently and productively while ensuring everyone pays their fair share. 'This is a crucial step in this government's decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.' From April 2026, self-employed people with qualifying income above £50,000 will need to keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC. These digital requirements will help businesses save time through more efficient record-keeping, reduce errors in tax calculations, and provide a clearer picture of their tax obligations throughout the year. Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted. Those with qualifying income above £30,000 will also be required to use MTD for Income Tax from April 2027. The threshold will then decrease to £20,000 from April 2028. The phased introduction of MTD for Income Tax follows the successful implementation of MTD for VAT, which is now used by more than 2 million businesses. An independent report published in 2021 found that 69% of mandated businesses experienced at least one benefit from MTD for VAT, while 67% reported that it reduced the potential for mistakes in their record keeping. Craig Ogilvie, HMRC's Director of Making Tax Digital, says: "MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997. "It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax. "By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year.'
North Wales Chronicle
25-04-2025
- Business
- North Wales Chronicle
HMRC rule changes: Making Tax Digital Self Assessment 2026
This is what it describes as its 'most significant change to Self Assessment since 1997'. Sole traders and landlords are being urged to act now, with one year until Making Tax Digital for Income Tax launches, with eligible taxpayers encouraged to sign up to a testing programme now to get ahead of the changes. A statement from HMRC says: "The launch on April 6 2026 marks a significant and ultimately time-saving change in how these individuals will need to keep digital records and report their income to HM Revenue and Customs (HMRC). "By keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities and in turn, driving economic growth as part of our Plan for Change." Quarterly updates are designed to spread the workload more evenly throughout the year and bring the tax system closer to real-time reporting, avoiding a rush of receipt-filing and paperwork ahead of a January 31 deadline. James Murray MP, Exchequer Secretary to the Treasury, says: "MTD for Income Tax is an essential part of our plan to transform the UK's tax system into one that supports economic growth. 'By modernising how people manage their tax, we're helping businesses work more efficiently and productively while ensuring everyone pays their fair share. 'This is a crucial step in this government's decade of national renewal and our Plan for Change, as we clear away barriers that hold back growth.' From April 2026, self-employed people with qualifying income above £50,000 will need to keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC. These digital requirements will help businesses save time through more efficient record-keeping, reduce errors in tax calculations, and provide a clearer picture of their tax obligations throughout the year. Qualifying income includes gross income from self-employment and property before any tax allowances or expenses are deducted. Those with qualifying income above £30,000 will also be required to use MTD for Income Tax from April 2027. The threshold will then decrease to £20,000 from April 2028. The phased introduction of MTD for Income Tax follows the successful implementation of MTD for VAT, which is now used by more than 2 million businesses. An independent report published in 2021 found that 69% of mandated businesses experienced at least one benefit from MTD for VAT, while 67% reported that it reduced the potential for mistakes in their record keeping. Craig Ogilvie, HMRC's Director of Making Tax Digital, says: "MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997. "It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax. "By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD Customer Support Team, before it becomes compulsory next year.'
