Making Tax Digital for Income Tax, explained
Making Tax Digital for Income Tax changes how sole traders and landlords report to HMRC. Here's what it means and how BusyBee Hub helps; quarterly updates and the Final Declaration are both live today.
What's changing
Instead of one figure once a year, HMRC expects a quarterly update on your income and expenses throughout the year, followed by a Final Declaration once the tax year ends.
Who it affects, and when
Sole traders and landlords above HMRC's qualifying income threshold need to follow Making Tax Digital rules. HMRC confirms your own status when you connect your account, and BusyBee Hub shows it too.
How quarterly updates work in BusyBee Hub
Add your National Insurance number in tax settings, connect to HMRC, and BusyBee Hub matches the businesses and quarters HMRC has on record. Before each update, check the figures we've built from your records, then send it with one confirmation. Updates are due on 7 August, 7 November, 7 February and 7 May, a month and two days after each quarter ends.
The Final Declaration
Once the tax year ends, work through the same figures a step at a time: annual adjustments for each business, then other income such as PAYE, interest and dividends, then HMRC's own calculation shown next to ours, and finally the declaration itself. It's due by 31 January, the same date as your balancing payment.
Try BusyBee Hub free for 30 days. No card required.
Try for free