Checklists

Making Tax Digital for Income Tax for Individuals Full Checklist

Stay on top of your digital tax obligations with our complete checklist tailored for individuals. Ensure accurate, timely submissions and seamless compliance with MTD for Income Tax.
Preview Checklist

Making Tax Digital for Income Tax for Individuals: Full Checklist

1. Check if you are required to sign up
☐ Confirm you are registered for Self Assessment.
☐ Confirm you receive income from self-employment or property (or both).
☐ Check if your qualifying income (gross self-employment + property income) is:
    o Over £50,000 → Required from 6 April 2026.
    o Over £30,000 → Required from 6 April 2027.
☐ If income between £20,000–£30,000, MTD will apply later (timeline to be confirmed).

2. Work out your qualifying income
☐ Include self-employment income (gross, before expenses).
☐ Include property income (your share if jointly owned).
☐ Exclude:
    o Employment (PAYE) income.
    o Partnership income (unless disguised investment management fees apply).
    o Dividends and savings interest.
    o Qualifying care relief, basis period transition profits, trust income, etc.
☐ Apply UK tax residence rules when including/excluding foreign income.

3. Check your start date
If qualifying income > £50,000 based on 2024–2025 tax return → Start MTD from 6 April 2026.
If qualifying income > £30,000 based on 2025–2026 tax return → Start MTD from 6 April 2027.
☐ Await HMRC confirmation letter after submitting your return.

4. Prepare your compatible software
☐ Select software that:
    o Creates, stores, and corrects digital records.
    o Sends quarterly updates.
    o Submits your final tax return.
    o Supports all relevant income sources (self-employment, UK property, foreign property).
☐ If using spreadsheets, ensure you have bridging software.
☐ If your accounting period is 1 April–31 March, confirm the software supports calendar update periods.

5. Sign up for Making Tax Digital for Income Tax
☐ Ensure:
    o Up-to-date personal details with HMRC.
    o UK resident status.
    o National Insurance number.
    o No outstanding tax liabilities.
☐ Collect required information:
    o Business name, start date, address, and type.
    o Accounting method (cash or traditional).
    o Accounting period (standard or calendar).
☐ Use your HMRC online services account or let your agent sign you up.

6. Create and maintain digital records
☐ Create digital records of:
    o Self-employment income and expenses.
    o Property rental income and expenses.
☐ Keep original invoices, receipts, and documents (digitally or physically).
☐ If using bridging software, ensure digital links are maintained (no copy-paste).

7. Send quarterly updates
☐ Prepare quarterly updates covering:
    o 6 April–5 July (Deadline: 7 August)
    o 6 April–5 October (Deadline: 7 November)
    o 6 April–5 January (Deadline: 7 February)
    o 6 April–5 April (Deadline: 7 May)
☐ Alternatively, opt for calendar periods (1 April–30 June, etc.).
☐ Send even if no income/expenses (“nil returns”).

8. Adjust your business income at year-end
☐ After sending your 4th quarterly update:
    o Apply tax adjustments (e.g., disallowable expenses).
    o Apply accounting adjustments (e.g., accruals, prepayments).
    o Adjust for 1–5 April income if using calendar periods.
    o Claim reliefs and allowances (e.g., capital allowances, Rent a Room relief).

9. Finalise your Income Tax position
☐ Add other income sources (dividends, savings, employment) into your software.
☐ Submit your full Self-Assessment tax return via compatible software.
☐ Submit by 31 January following the end of the tax year.
☐ Confirm the information is accurate and complete.

10. Stay compliant with record-keeping and payments
☐ Keep digital records for at least 5 years after 31 January deadline.
☐ Pay Self-Assessment tax bill on time to avoid penalties.
☐ Manage any changes:
    o Add or cease income sources via HMRC online account.
    o Adjust payments on account if needed.
    o Amend returns via HMRC or through contacting support.

⭐ Other Situations to Monitor
• If you start a new business after signing up → Include it from next Self-Assessment year.
• If you jointly let properties → Choose whether to submit full or simplified expenses in quarterly updates.
• If your turnover crosses £90,000 → Apply full digital categorisation requirements.

Summary Step Key Action 1 Confirm if you need to sign up 2 Calculate qualifying income 3 Identify your MTD start date 4 Choose MTD-compatible software 5 Sign up for MTD Step Key Action 6 Keep digital records correctly 7 Send quarterly updates 8 Adjust and finalise income 9 Submit tax return 10 Maintain record-keeping and payments compliance

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