A regional accountancy firm has launched a new toolkit to help UK businesses prepare for sweeping changes to income tax reporting, amid concerns that many remain unaware of the government’s push to digitise the system from April 2026.
Saint & Co Chartered Accountants said its Making Tax Digital (MTD) Toolkit is designed to support self-employed workers and landlords as they transition to the government’s new digital reporting requirements, part of a wider effort by HM Revenue and Customs to modernise the tax system.
The initiative comes as research by IPSE highlights a significant awareness gap among those affected. A survey by the self-employed membership body found that 70% of businesses are either unaware of the Making Tax Digital initiative or do not fully understand what it involves.
Making Tax Digital for Income Tax will require sole traders and residential landlords above certain income thresholds to maintain digital financial records and submit more frequent updates to HMRC using approved software.
Lindsay Farrer, Partner at Saint & Co, warned the changes would have far-reaching consequences across the UK’s self-employed sector.
“Making Tax Digital for Income Tax is a major initiative which will impact potentially millions of self-employed businesspeople and landlords across the UK, and it is worrying to see the results of an IPSE survey that a large percentage of those are unaware of the implications of the changes,” Farrer said.
“The MTD Toolkit will provide people with easy-to-understand information and highlight that help is at hand if they are struggling to get their heads round it all.
“By providing the downloadable assets and video, we want all those who will impacted by MTD to know exactly what is required from them and why it is crucial they become compliant to avoid any penalties.
“The HMRC initiative is coming in from April 2026 and preparation ahead of it being rolled out is key, so people really need to be up to speed with all requirements.”
Under the new rules, affected taxpayers will need to use compatible accounting software to keep digital records of income and expenses, submit quarterly updates to HMRC and complete an End of Period Statement alongside their annual tax declaration.
The rollout will initially apply to those with gross annual income exceeding £50,000 from April 2026. The threshold will then fall to £30,000 in April 2027 and £20,000 in April 2028, significantly expanding the number of taxpayers required to comply.
Saint & Co said its toolkit is intended to simplify the transition. It includes a dedicated information hub on its website, factsheets explaining the changes, compliance checklists, guidance on approved software and a short explanatory video outlining what businesses need to do.
Alex Dent, Head of Tax at the firm, said accountants would play a key role in helping businesses adapt to the new regime.
“Businesses should seek the help of their accountants if they are struggling to understand the implications of the rollout of MTD as they will be able to provide guidance on everything from when reports need submitting right through to which software they should be using,” Dent said.
“The Toolkit we have produced will be of great help to those who aren’t aware of what MTD means for them, and we can provide further assistance to make sure they don’t fall foul of the legislation.”
Making Tax Digital forms part of HMRC’s long-term strategy to create a fully digital tax administration system, which the government says will improve efficiency, reduce errors and provide taxpayers with greater clarity over their finances.
However, the transition represents a significant operational shift for many small businesses and landlords, particularly those who have relied on manual record-keeping or annual reporting cycles.
Saint & Co, which was founded in Carlisle in 1884, now operates nine offices across Cumbria and Dumfries & Galloway, employing around 120 staff. The firm said it expects demand for guidance to increase as the implementation date approaches and awareness grows.
With just over a year until the first phase takes effect, tax specialists say businesses that delay preparation risk compliance challenges, administrative disruption and potential penalties.
The firm’s toolkit is available online and forms part of wider efforts within the accountancy sector to prepare clients for one of the most significant changes to UK income tax reporting in decades.
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