Latest news with #CraigOgilvie
Daily Mirror
2 days ago
- Business
- Daily Mirror
Millions of workers to face major tax changes within months
HMRC has confirmed that the Making Tax Digital (MTD) for Income Tax changes will apply to sole traders and landlords, and will require them to use digital record-keeping to record their income tax Major tax changes are on the horizon for self-employed Brits from HM Revenue and Customs (HMRC) next year. Sole traders earning over £50,000 will soon be required to use the Making Tax Digital (MTD) service to record their income tax. The tax shake-up, set to kick off from 6 April 2026, will push more workers towards digital record-keeping. With an estimated 4.4 million self-employed individuals in the UK, it's anticipated that sole traders and landlords - who will also be impacted by the changes - will find submitting their tax returns less time-consuming. HMRC predicts around 780,000 self-employed people and landlords will need to adopt MTD for Income Tax from April 2026, with a further 970,000 joining from April 2027. Officials suggest that quarterly updates included in the system will spread the workload more evenly throughout the year, bring the tax system closer to real-time reporting, and help businesses manage their finances and avoid the last-minute scramble when it comes to filing their tax returns. James Murray MP, Exchequer Secretary to the Treasury, has thrown his weight behind the Making Tax Digital (MTD) initiative for Income Tax, hailing it as a crucial part of the government's strategy to improve the UK's tax system and boost economic growth, reports the Express. He stated: "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." He further elaborated on the significance of the new system, saying: "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." Craig Ogilvie, HMRC's Director of Making Tax Digital, weighed in on the sweeping changes, remarking: "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." More information on how MTD will impact sole traders can be found here..
Daily Mirror
4 days ago
- Business
- Daily Mirror
Major HMRC income tax change due to come into force from next April
The self-employed and landlords should start preparing now as it will soon be mandatory for them to use the HMRC's Making Tax Digital for Income Tax With less than a year to go, sole traders and landlords earning over £50,000 will be required to use Making Tax Digital (MTD) for Income Tax from April 6, 2026. This significant change will require these individuals to keep digital records and report their income to HM Revenue and Customs (HMRC), marking a time-saving shift in tax reporting. By maintaining digital records throughout the year, sole traders and landlords can save hours previously spent collating information at tax return time. This allows them to focus more on their business activities, driving economic growth as part of our Plan for Change. HMRC estimates that around 780,000 self-employed individuals and landlords will need to use MTD for Income Tax from April 2026, with an additional 970,000 joining from April 2027. In other news, DWP state pensioners are set to be given 'extra £352' completely free. Quarterly updates will distribute the workload more evenly throughout the year, bringing the tax system closer to real-time reporting. This will help businesses stay on top of their finances and avoid the last-minute rush. HMRC is encouraging eligible customers to sign up to a testing programme on and start preparing now. Agents can also register their clients via reports the Daily Record. James Murray MP, exchequer secretary to the Treasury, recently 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." 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." Starting from April 2026, people earning qualifying income exceeding £50,000 will be required to maintain digital records, utilise MTD-compatible software and file quarterly updates of their earnings and expenditure to HMRC. These digital obligations are designed to help enterprises save time through more streamlined record-keeping, minimise mistakes in tax computations, and offer a clearer understanding of their tax duties throughout the year. Qualifying income, which includes gross earnings from self-employment and property before any tax allowances or expenses are deducted, will be subject to new rules. From April 2027, those with qualifying income above £30,000 will be required to use MTD for Income Tax. The threshold will then decrease to £20,000 from April 2028. The gradual roll-out of MTD for Income Tax follows the successful implementation of MTD for VAT, which now aids over two million businesses in reducing errors and saving time on their tax affairs. Businesses that participated in the MTD for VAT testing phase were better equipped for the transition to quarterly reporting. A 2021 independent report revealed that 69 per cent of mandated businesses experienced at least one benefit from MTD for VAT, while 67 per cent reported that it reduced the potential for mistakes in their record keeping.
Daily Record
5 days ago
- Business
- Daily Record
New HMRC income tax change set to start next April
The launch on April 6, 2026 will mark a significant and time-saving change for certain people in how to report income to HMRC. There is less than a year to go until sole traders and landlords with an income over £50,000 will be required to use Making Tax Digital (MTD) for Income Tax. 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. HMRc estimates around 780,000 self-employed individuals and landlords will be required to use MTD for Income Tax from April 2026, with a further 970,000 joining from April 2027 Quarterly updates will spread the workload more evenly throughout the year, bring the tax system closer to real-time reporting and help businesses stay on top of their finances and avoid the last-minute rush. HMRC is urging eligible customers to sign up to a testing programme on and start preparing now. Agents can also register their clients via James Murray MP, Exchequer Secretary to the Treasury, recently 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.' 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.' From April 2026, individuals 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 now helps more than two million businesses reduce errors and save time on their tax affairs. Businesses which joined the MTD for VAT testing phase were better prepared for the move to quarterly reporting. An independent report published in 2021 found that 69 per cent of mandated businesses experienced at least one benefit from MTD for VAT, while 67per cent reported that it reduced the potential for mistakes in their record keeping.
Daily Mirror
01-08-2025
- Business
- Daily Mirror
HMRC confirms big change to income tax system starts next April
The significant change will require these people to keep digital records and report their income to HM Revenue and Customs With less than a year to go, sole traders and landlords earning over £50,000 will be required to use Making Tax Digital (MTD) for Income Tax from April 6, 2026. This significant shift towards digital record-keeping and income reporting to HM Revenue and Customs (HMRC) is set to save time in the long run. By maintaining digital records throughout the year, sole traders and landlords can save hours previously spent collating information at tax return time. This allows them to focus more on their business activities, driving economic growth as part of the Plan for Change. HMRC estimates that around 780,000 self-employed individuals and landlords will need to use MTD for Income Tax from April 2026, with an additional 970,000 joining from April 2027. Quarterly updates will distribute the workload more evenly throughout the year, bringing the tax system closer to real-time reporting. This will help businesses stay on top of their finances and avoid the last-minute rush. HMRC is encouraging eligible customers to sign up to a testing programme on a and start preparing now. Agents can also register their clients via reports the Daily Record. James Murray MP, Exchequer Secretary to the Treasury, has championed the new 'MTD for Income Tax' as a cornerstone of the government's strategy to revamp the UK's tax system in favour of economic growth. "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." He hailed the initiative as a pivotal move in the government's ambitious 'Plan for Change' and its commitment to a decade of national renewal, aiming to dismantle obstacles impeding economic expansion. "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." Craig Ogilvie, HMRC's Director of Making Tax Digital, underscored the significance of the changes, marking them as the most substantial since Self Assessment was introduced in 1997. "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." Ogilvie also encouraged early adoption of the system, highlighting the benefits of joining the testing programme, which includes support from the MTD Customer Support Team. "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." Starting April 2026, individuals with income over £50,000 will be required to maintain digital records, utilise MTD-compatible software, and submit quarterly summaries of their financial activities to HMRC. The shift towards digital record-keeping is expected to streamline business operations, minimise tax calculation errors, and offer a more transparent view of tax responsibilities throughout the fiscal 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 now assists over two million businesses in reducing errors and saving time on their tax affairs. Businesses that participated in the MTD for VAT testing phase were better prepared for the transition to quarterly reporting. An independent report published in 2021 discovered that 69 per cent of mandated businesses experienced at least one benefit from MTD for VAT, while 67 per cent reported that it reduced the potential for mistakes in their record keeping.
Daily Mirror
10-07-2025
- Business
- Daily Mirror
HMRC to make new changes to income tax from April next year
Making Tax Digital for Income Tax will be introduced in April 2026 - with sole traders and landlords with an income over £50,000 required to keep digital records With less than a year to go, sole traders and landlords earning over £50,000 will be required to use the new Making Tax Digital (MTD) for Income Tax from April 6, 2026. This significant change towards digital record-keeping and income reporting to HM Revenue and Customs (HMRC) is set to save these people considerable time. By maintaining digital records throughout the year, sole traders and landlords can save precious hours previously spent collating information at tax return time, the Government claims. This allows them to dedicate more time to their business activities, thereby driving economic growth as part of the 'Plan for Change'. HMRC estimates that approximately 780,000 self-employed people and landlords will be required to use MTD for Income Tax from April 2026, with an additional 970,000 joining from April 2027. The introduction of quarterly updates will distribute the workload more evenly throughout the year, bringing the tax system closer to real-time reporting. This will assist businesses in managing their finances more effectively and avoid the last-minute rush. HMRC is encouraging eligible customers to sign up for a testing programme on and start preparing now. Agents can also register their clients via James Murray MP, the 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." 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." Come April 2026, individuals whose qualifying income exceeds £50,000 will need to maintain digital records, employ MTD-compatible software, and submit quarterly financial summaries to HMRC, reports the Daily Record. The Government says 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 now helps more than two million businesses reduce errors and save time on their tax affairs. Businesses which joined the MTD for VAT testing phase were better prepared for the move to quarterly reporting. An independent report published in 2021 found that 69 per cent of mandated businesses experienced at least one benefit from MTD for VAT, while 67 per cent reported that it reduced the potential for mistakes in their record keeping.
