**Heads Up: Major Tax Changes Coming Your Way! 🚨**
If you’re a landlord or self-employed earning over £50k, listen up! Big changes are coming to how you report income to HMRC starting April. Under the new Making Tax Digital rules, you’ll need to submit your income and expenses every quarter instead of the annual self-assessment.
Here’s what you need to know:
🔹 **Who’s Affected?**
Unincorporated sole traders and landlords with a turnover of £50,000+ will need to get onboard by April 6, 2026. By 2028, nearly 3 million individuals will join this digital shift as thresholds drop to £30,000 in 2027 and £20,000 in 2028.
🔹 **Reporting Dates**
Quarterly filings will be due in August, November, February, and May. Your final annual declaration will replace your old self-assessment by January 31 after the tax year ends.
🔹 **Compliance is Key**
HMRC’s new penalty system will see £200 fines for late submissions or payments. So, stay on top of those dates! Although there’s a grace period for late updates during the first year, it’s best to familiarise yourself with the process now.
🔹 **Software Needed**
HMRC won’t provide software, so you’ll need to find compatible tools to submit your info. Make sure it’s approved!
🔹 **Stay Informed**
HMRC will be contacting those affected, but it’s wise to seek your own advice to ensure you’re prepped and ready. Support is available on the GOV.UK website, including a handy checker tool for registration requirements.
Get ahead and make sure you’re ready for these tax changes. Avoid penalties and ensure a smooth transition into this new system. 🌟
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