Making Tax Digital for Income Tax - Nearly There

OBJECTIVES

As we approach the implementation date for Making Tax Digital (MTD) for Income Tax, we will cover the latest news, legislation and guidance to ensure you, your firm and your affected clients are ready to go on 6 April 2026

KEY TOPICS

OVERVIEW OF MTD FOR INCOME TAX

• What is Making Tax Digital for Income Tax?
• When does MTD for IT start?
• What is qualifying income?
• What are the new penalties that will apply?
• Is anyone exempt from MTD for income tax?
• Whose responsibility is it to assess when an individual is mandated into MTD for income tax?

LEGISLATION AND GUIDANCE

• Legislation
• The current position
• Primary Legislation
• Secondary legislation – commencement date
• Secondary legislation – the detail
• Tertiary legislation – even more detail!
• General HMRC Guidance
• Other guidance

WHAT’S NEW?

• Budget 2025 – overview
• Soft landing period for late filing penalties
• Late payment penalties
• More exemptions and deferrals
• MTD for childminders
• Finance Bill 2025-26
• Exemptions and deferrals
• Permanent exemptions
• Temporary Exemptions
• Application process for an exemption (including digital exclusion)
• Applying for an exemption
• Contact details
• Applying for an exemption on behalf of someone else
• What you need in order to apply
• After applying
• Appeals
• Signing up for MTD
• Updated guidance: Use Making Tax Digital for Income Tax
• Trading & property allowances and Rent-a-Room scheme income
• ‘Soft landing’ period
• Updated guidance: Work out your qualifying income
• If your accounting period is longer or shorter than 12 months
• Ceased income sources
• Amendments to your Self Assessment tax return
• HMRC Assist
• International issues
• UK resident individuals – qualifying income
• Non-UK resident individuals – qualifying income
• Specific exemption – Individuals without a national insurance number
• Exemption and deferral - Non-UK resident entertainers and sportspeople
• Deferral until April 2027 – individuals needing to use the SA109 supplementary page
• Self-employment
• Property
• Converting foreign income to sterling

HMRC AGENT TOOLKIT

• Understanding MTD for income tax
• Planning
• Preparing your practice
• Agent roles
• Deciding which services to offer
• The Agent Services Account
• Choosing software
• Authorising your chosen software
• Preparing your clients
• A conversation checklist
• Signing up your clients
• Guidance and other useful information

PROFESSIONAL ETHICS

• Professional Conduct in relation to Taxation (PCRT)
• General guidance for PCRT body members
• Practical guidance concerning submission of data and approvals
• Practical guidance regarding accuracy
• Responsibilities of our members
• Letters of engagement

WHO SHOULD ATTEND

Partners, managers and other staff in practice who need to know the most up to date MTD information in order to prepare both the practice and affected clients for the 2026 implementation.