With effect from April 2026, landlords and sole traders with gross income exceeding £50,000 are required to make quarterly reports to HMRC setting out their income and expenses.

Making Tax Digital for Income Tax is designed to modernise the way self-employed individuals and landlords manage and report their tax affairs. Under this scheme, those affected are required to keep digital records of their business income and expenses and submit quarterly updates to HM Revenue & Customs (HMRC) using compatible software. The primary aim is to improve efficiency, reduce errors, and ensure greater accuracy in tax reporting, ultimately making it easier for taxpayers to stay compliant. 

However, transitioning to this new digital system can present challenges, such as maintaining precise digital records, staying on top of regular submission deadlines, and choosing the right software. This is where professional accountancy support proves invaluable; expert guidance not only assists with selecting and implementing suitable digital solutions, but also ensures ongoing compliance and helps identify opportunities for tax savings.

MTD is based on gross income before expenses, so those with modest profits may still need to make quarterly reports. Reporting thresholds will fall in the coming years, you can read more details by downloading the document on this page.

With tailored advice and hands-on support, we can help you confidently meet your reporting obligations under Making Tax Digital, while maximising the benefits of a streamlined tax process.