Are you a “Festive Filer”?

If you were one of the 4,409 people who filed their Self-Assessment tax return on Christmas Day in 2024, you might be pleased to know that this could be your last year of slaving away over your paperwork, instead of enjoying an extra helping of Christmas dinner.

Is there a better way to manage self-assessment tax returns?

According to figures from HMRC, 40,072 people filed their tax return over the festive period last year, with more than 23,000 filing on Christmas Eve and nearly 12,000 on Boxing Day. Almost 400 people filed on Christmas Day between 15:00 and 15:59, which means many of you were sloping off before the King had a chance to finish his speech.

If you are one of these “festive-filers”, then there could be an extra gift under the tree just for you. Making Tax Digital (MTD) will likely save the end-of-year dread, because you’ll be able to keep better track of your finances throughout the year rather than rushing to meet the 31^st January deadline.

What is Making Tax Digital?

MTD for Income Tax is going to start becoming mandatory from April 2026 and will impact sole traders, landlords and self-employed individuals with incomes over £50,000.

It is designed to modernise reporting within the tax system, replacing the annual self-assessment scramble with a structured, year-round approach. Under MTD, taxpayers submit quarterly tax reporting updates using compatible software, followed by a final year-end submission.

While this may sound like additional work, it actually reduces it because your software will track all your expenditure, income and other records as you go throughout the year. Using MTD compatible software also simplifies compliance, automates calculations and ensures accurate submissions – so it significantly reduces the risk of errors, missed deadlines and unexpected tax bills.

Do I need to prepare now for Making Tax Digital?

If you would normally Self Assess for any income from self employment or property, for example, and that income exceeds £50,000, you should be making preparations now for the April 2026 deadline.

It is best to utilise software specifically tailored for handling MTD so that you can relax knowing that you will not have any compliance issues. If you’ve not done so already, start researching which one might suit you best - we can even help you with that too if you need more guidance.

After April 2026, the MTD threshold drops to £30,000 in 2027 and £20,000 in 2028, so more people will be pulled in over time. Although, there is nothing preventing taxpayers from preparing early, especially if you are looking to avoid the annual Christmas and New Year rush to submit your return. Preparing early will also help improve cash-flow planning, provide peace of mind – and it will be the last time you find yourself filing over Christmas.

Our team of experts are here to help you prepare for MTD. Speak to our team today!