🚨 Heads up, folks! HMRC is rolling out new ‘four point’ letters and if you fall into a specific income bracket, you’ll need to act by April! 📬
If your 2024-2025 income tops £50,000 from self-employment or property, you might already have one of these letters. 🏠💼 It signals the start of Making Tax Digital for Income Tax, kicking in from 6th April 2026. So, what does this mean for you? 🤔
Quarterly digital reporting becomes the norm, and you’ll need to keep all records on compatible software. That means no more annual paper or online returns as we’ve known them. From the 2026-2027 tax year, you’ll submit quarterly updates, with your year-end tax return due by 31st January. 📅
But here’s the twist: you’ve got to do double duty for a bit! The last traditional Self Assessment for 2025-2026 needs filing by 31st January 2027, overlapping with the new digital demands. 📊 This transition will be especially tricky for self-employed childcare pros and landlords.
Miss a deadline? HMRC is introducing a new points-based penalty system. Four missed deadlines and you face a financial penalty. While no points for late quarterly updates happen initially, missing a return deadline by 31 January 2028 will count. Beyond this, both missed quarterly updates and return deadlines directly lead to penalty points. ⚠️
Got that letter? Time to act! Registering isn’t automatic. Choose your software and sign up by April 2026, or risk falling behind. And if you work with a financial adviser, make sure to share this letter with them—they won’t receive it automatically. 📈
Didn’t get a letter but think you should have? It’s still your responsibility to check if your income level means you need to register. 💡
Time’s ticking! ⏰ Make sure you’re ready and on top of your game before the new system kicks in. 🌟
#TaxUpdate #HMRC #MakingTaxDigital #StayInTheKnow