Making Tax Digital: Disclosures

This section allows you to provide HMRC with specific regulatory disclosures that may apply to you as part of your Making Tax Digital (MTD) for Income Tax submissions.

Tax Avoidance

If you have used or are involved in a tax avoidance scheme that has been assigned a Scheme Reference Number (SRN) by HMRC, you are legally required to declare it.

Scheme Reference Number

What to enter: The 8-digit numerical reference number associated with the tax avoidance scheme.

HMRC Guidance: You will typically receive this SRN from the promoter of the scheme (often provided to you on form AAG6), or sometimes from your employer or HMRC. You must report this number to HMRC to comply with disclosure rules. Please note that HMRC allocating an SRN does not mean they approve or validate the scheme.

Tax Year

What to enter: The specific tax year in which you expect the financial advantage or tax benefit of the scheme to arise. Enter this strictly in the format YYYY-YY (for example, 2023-24).

HMRC Guidance: This specifies the exact tax period for which the avoidance scheme is expected to reduce your tax liability or provide an advantage.

Class 2 NICs

This section handles your voluntary National Insurance Contributions (NICs) relating to your self-employment.

Class 2 Voluntary Contributions

What to enter: Check this box or select ‘Yes’ if you actively choose to make voluntary Class 2 National Insurance Contributions for the tax year.

HMRC Guidance: From April 2024, self-employed individuals with profits below the small profits threshold (£6,725 for the 2024/25 tax year) are not required to pay Class 2 NICs. However, you can choose to pay them voluntarily to protect your National Insurance record and ensure you qualify for benefits like the State Pension or Maternity Allowance.

If your profits are between the small profits threshold and the lower profits limit (£12,570 for 2024/25), you will automatically receive a National Insurance credit without needing to pay voluntarily. You should only select this option if you need to make voluntary payments to fill a gap in your record.