10/04/2025
From April 2026, if you're a sole trader or landlord earning over £50,000 a year, you’ll need to follow new rules under Making Tax Digital for Income Tax (MTD for IT). 📅 If you have income from a sole trader business and a rental, with the combined income totalling £50,000 or more you will need to follow the rules and submit separate quarterly updates for each income source.
MTD is part of the government’s plan to modernise tax reporting. It means saying goodbye to paper records 📄 and annual tax returns — and moving to digital record-keeping 📊 and quarterly reporting through HMRC-approved software like Xero.
Here’s what’s changing:
You must keep digital records. 💻
You’ll send quarterly updates to HMRC.
A final declaration will confirm your total tax position.
Those earning over £30,000 will follow from April 2027, and those with income over £20,000 from April 2028.
Start preparing now:
Get familiar with digital software 🛠️
Review your income and expenses regularly
It’s a big shift, but with the right support and tools in place, it doesn’t have to be stressful. Want help going digital? Let’s chat – we’ll make it clear and simple. 🤝
