Major tax change looms for the self-employed and landlords
Self-employed people and landlords in Angus are being urged to ensure they are ready for a major change to the tax system.
Charity Advice Direct Scotland, which runs the free service taxadvice.scot, said its advisers are on hand to help those struggling to get to grips with new HMRC rules. Around 780,000 people across the UK, including tens of thousands of Scots, are making the switch to the ‘Making Tax Digital’ system from April 6. A further 970,000 people will be required to join the scheme in 2027.
The new system means sole traders and landlords earning more than £50,000 will need to keep digital records and send quarterly updates to HMRC, instead of filling in an annual tax return.
Those who are eligible will also need to use specialist computer software to create, store and correct their records, and send the quarterly updates.
Advice Direct Scotland said eligible taxpayers should start preparing for the changes immediately, if they have not already done so, and urged anyone requiring help to get in touch.
The charity said moving to digital recordkeeping could make managing tax easier in the long run, by reducing errors and saving time.
It also means less time spent searching for paperwork at the end of the tax year, as records can be updated by business owners as they go.
Andrew Bartlett, chief executive of Advice Direct Scotland, said:
“This is a major change for self-employed people and landlords in how they manage their finances, and anyone affected should take action now.
“It promises to be a positive move, as going digital can simplify recordkeeping, reduce the stress of tax season, and free up time to focus on business development.
“But with the April 6 deadline fast approaching, now is the time to check if you are among those affected and take action. Don’t leave it to the last minute.
“These types of changes can feel overwhelming, but don’t worry. Advice and support is available at taxadvice.scot, or by calling 0800 756 3381.
“If you’re unsure, don’t struggle on alone. Asking for help is the smart move to stay ahead.” Advice Direct Scotland is one of 12 voluntary and community organisations across the UK chosen by HMRC to provide tailored tax and benefits advice. It is the only one offering the service in Scotland. Experts at taxadvice.scot can help with a wide range of issues, including PAYE and National Insurance queries, as well as guidance on completing self-assessment forms.