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From April 2026, small businesses, sole traders and landlords will need to change how they report income tax to HMRC. New legislation, known as Making Tax Digital for Income Tax (MTD for IT ), is set to be introduced, sparking a shift in financial reporting requirements. To comply with MTD for IT requirements, businesses will need to do three things: send quarterly updates on business income and expenses, keep digital records, and submit returns annually using MTD-compatible software.
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