News

MTD is here for sole traders and landlords:
18 February 2026

From 6 April this year, Making Tax Digital (MTD) will make a fundamental change to the way sole traders and landlords report Income Tax.

What is it?

MTD for Income Tax is a new system for certain taxpayers to manage and report Income Tax to HMRC.

It applies to sole traders and landlords and replaces the single annual reporting with four quarterly reports followed by a final return.

Who is affected?

You’ll need to report under MTD if all of the following apply:

• You’re a sole trader or a landlord registered for Self-Assessment with income above ?50,000
• You get income from self-employment or property, or both
• Your qualifying income (total income from self-employment and property) is more than ?20,000

Now that the 2024/25 income tax return deadline has passed and all returns have been completed and filed, we are in the course of writing to all clients who are affected by the change. Those affected have a mandatory requirement to account for income and expenditure under MTD on a quarterly basis to HMRC from April 2026.

What it means for those affected:

Because of the way HMRC require data to be reported, under MTD you must:

• Keep digital records
• Send quarterly summaries of income and expenses to HMRC
• Do so using MTD-compatible software.

What do you need to do next?

In the build up to the launch of MTD, we have been devising the most efficient and cost-effective way to assist our clients with the new MTD rules, so we can help you seamlessly transition to the new way of reporting…as noted above, if you’re affected we’ll be in touch shortly, however if you’ve received a letter from HMRC in relation to MTD, please let us know immediately.