WatsOn Autumn 2025 Newsletter (Issue 42)

Making Tax Digital for Income Tax – Exemptions

In just over six months the first group of self-employed taxpayers and landlords will be required to join HMRC’s Making Tax Digital for income tax (MTD IT) programme. However, some individuals may be able to apply for an exemption on the grounds of “digital exclusion” due to religious beliefs, age, disability, location, or other reasons. Automatic exemptions are also available for partnership income, trustees, and non-resident companies.

Winter Fuel Payment Clawback

Eligible pensioners will receive a Winter Fuel Payment of up to £300 to help with heating costs. However, you will only be entitled to keep this payment if your total taxable income is less than £35,000 for the tax year ending in April 2026. The clawback is “all or nothing”, meaning even £1 over the threshold will result in losing the entire payment.

Cryptoasset Reporting Framework (CARF)

From January 2026, UK businesses facilitating cryptoasset exchanges must collect user and transaction data to report to HMRC under the new CARF rules. Individuals who hold cryptoassets (including bitcoin, stablecoins, and NFTs) will need to provide personal details to their service providers. Self-assessment returns for 2024-25 will include new separate boxes for reporting cryptoasset gains and losses.