Arif Patel

Under Making Tax Digital for Income Tax (MTD for ITSA), for sole traders and landlords the traditional Self Assessment tax return is gradually being replaced with a new digital end-of-year process. Although quarterly updates are submitted throughout the year, taxpayers will still need to complete a final year-end submission to confirm their overall tax position. What is the end-of-year submission? This is effectively the final confirmation of income, expenses and tax calculations for the year.

Making Tax Digital for Income Tax (MTD for ITSA) introduces a new penalty system for late submissions and late payments in respect of income tax. HMRC is moving away from the traditional fixed Self Assessment penalty structure towards a points-based approach. Understanding the new rules is essential for businesses and landlords preparing for MTD. What has changed?

It has only taken 15 years and a Middle East crisis for the Government to recognise the reality of today’s costs of running a car or van for business purposes. On the 21st May, Chancellor Rachel Reeves announced that the Approved Mileage Allowance Payment (AMAP) rate is to be increased from 45p per mile to 55p per mile and that this rate would be backdated to the start of this tax year on 6 April 2026. The increase will, however, only apply to the first 10,000 business miles covered in a tax year.