2023/2024 – brought everyone’s accounting period into line with the tax year. Although it only affected those who did not have an accounting year ending the 31st March or the 5th April. For example if you started trading in August 2000 and your accounting year end was set for a year from that point then your accounting year end would have been 31st July 2001. Your accounts would have been prepared to the 31st July each year thereafter. In 2023/2024 your accounts would have been prepared to cover the year to the 31st July 2023 as well as the additional period from the 1st August 2023 to the 31st March 2024. Technically the year should be in line with the tax year (6th April – 5th April each year) however, HMRC have allowed accounts to be prepared to cover a full month rather than preparing accounts for a few days. So it is probable that your accounts have been prepared to the 31st March in order to bring your accounts into line with the tax year.
Mandatory filing MTD for Income tax – Sole Traders and Landlords – starts in April 2026 depending on your income.
The threshold for mandatory filing in April 2026 relates to those with a total income of more than £50,000. The relevant year for the £50,000 limit is 2024/2025. So if your total income from trading and or rental income is more than £50,000 for the tax year ending 5th April 2025 you will be mandated to file MTD from April 2026.
Exactly what this means for you and how it impacts on you contact us and we will be happy to discuss the implications specific to your particular circumstances.
