Personal Tax

From 6 April 2026, individuals with combined annual turnover from self-employment and/or gross property rental income based on their 2024/25 Self-Assessment tax return exceeding £50,000 will need to comply.

From 6 April 2027, this threshold reduces to £30,000 and whether they exceed the limit will be based on the 2025/26 return.

From 6 April 2028, this threshold reduces to £20,000 and whether they exceed the limit will be based on the 2026/27 return.

We have created a factsheet with some of the most frequently asked questions about Making Tax Digital for Income Tax. Download your copy here.

Income Tax is a tax you pay on your income, including earnings from employment, self-employment, pensions, rental income, savings interest, and dividends.

The Personal Allowance is the amount you can earn in a tax year before you need to start paying income tax. This allowance changes each year, so it’s important to check the latest rates on the HMRC website. It is £12,570 for the 2025/26 tax year. If you earn over £100,000, your Personal Allowance reduces by £1 for every £2 earned above this threshold.

Self-Assessment is a system used by HM Revenue and Customs (HMRC) to collect Income Tax from individuals who do not have tax deducted automatically from their income. This includes self-employed individuals, landlords, and company directors.

The deadline for filing a paper tax return is October 31st, and the deadline for filing an online tax return is January 31st following the end of the tax year.

In general, if HMRC thinks you are paying the right amount of tax through the Pay As You Earn (PAYE) system you will not have a requirement to file a tax return. However, there are some instances where a tax return may be needed, as follows:

• You have self-employment/partnership income

• You let out a property or land and receive rental income

• You have significant investment income e.g. interest, dividends

• You have trust income

• You receive income from overseas

• You dispose of chargeable assets e.g. property, shares

• You contribute to a pension scheme and exceed the annual allowance

• You have made tax efficient investments and would like to claim relief e.g. SEIS, EIS, VCT

• Your household receives child benefit and you (as the higher earner) have income in excess of £60k

This list is not exhaustive, please get in touch to discuss any specific circumstances.

Yes, if your extra income exceeds the Trading Allowance, which is usually £1,000 per tax year. If you earn above this, you must register for self-assessment and report the additional income. However, if your earnings stay below £1,000, you generally don’t need to declare them.

The Scottish Income Tax rates and bands for 2025/26 can be found here – https://www.mygov.scot/scottish-income-tax/current-income-tax-rates

• If you or your partner get Child Benefit from the Government and either of you have an individual income over £60,000 (£50,000 for 2023/24) you may have to pay the ‘High Income Child Benefit Tax Charge’.

• If you and your partner both have income over the threshold, the higher earner is responsible for paying the tax charge (who receives the money into their bank account is not relevant). The amount of the charge is up to 100% of the Child Benefit received.

• You need to declare the charge on your tax return and pay what you owe to HMRC by the 31 January tax payment deadline.

• If you require assistance with your tax affairs, engaging a tax agent can be a prudent decision.

• Although there is an abundance of tax information readily available—particularly online—interpreting and applying it accurately to your individual circumstances can be challenging. Errors are easily made and can prove costly.

• A tax agent serves as a knowledgeable guide, helping to simplify complex matters, save time, and reduce stress. Ultimately, the decision comes down to your specific needs and whether professional support is the most suitable option for you.