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Jun 2025 – SmartPropertyManager.com & Making Tax Digital

Posted17 June 2025
Updated17 June 2025

Introduction to Making Tax Digital (MTD)

Making Tax Digital is a key part of the UK government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. The aim of the initiative is to make tax administration more effective, more efficient and easier for taxpayers, through the implementation of a fully digital tax system.

From 2019, VAT-registered businesses were required to keep records digitally and to use software to submit their VAT returns through the Making Tax Digital service.

From 2026, the government will start to roll out the Making Tax Digital service for Income Tax. See the following HMRC guide for more details:

https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

Who is affected by MTD?

  • From April 2026, self-employed individuals and landlords with qualifying income over £50,000 for the 2024–2025 tax year will likely need to submit Income Tax self-assessment returns under the MTD rules.
  • From April 2027, the requirement will extend to individuals who had qualifying income over £30,000 in the 2025–2026 tax year.
  • From April 2028, the requirement will apply to those who had qualifying income over £20,000 in the 2026–2027 tax year.

There are some exemptions – refer to the HMRC guide above.

What does MTD actually mean?

  • Qualifying individuals will be required to use MTD compatible software to keep digital records of the financial information relating to the income and expenses related to self-employment and or property income.
  • “Digital records” refer to the ‘financial information’ required to calculate profits, losses, income, and expenses for a customer’s business using either accrual basis or the cash basis of accounting.
  • Individuals will need to submit quarterly updates to HMRC through the MTD compliant software and then submit a final declaration at the end of the tax year.

How can SmartPropertyManager.com help?

If you are an active SmartPropertyManager.com user then you are almost there:

  • SmartPropertyManager.com already records the necessary transactions in a form that is compliant with the HMRC requirement.
  • It already has a very popular tax worksheet function that produces the precise summary figures required for the self-assessment (SA105) form. These are the same figures that need to be provided as quarterly updates to HMRC through the MTD digital gateway.
  • In addition, SmartPropertyManager.com is already approved for the HMRC Making Tax Digital gateway for VAT so we already meet their compliance requirements.

What next?

  • We are currently working on integrating SmartPropertyManager.com with the HMRC Making Tax Digital gateway for Income Tax and should be ready well before the April 2026 deadline.
  • We will be announcing more soon once we are ready to enable it for customers to use.

We’ll continue to keep you updated on new features we add to SmartPropertyManager. And as always, please don’t hesitate to contact us if you have questions or if you have any suggestions on how we can make SmartPropertyManager work better for you.

Best regards,
SPM Team

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