Sole traders and landlords still have time to get help with the new Making Tax Digital for income tax regulations being introduced by HMRC next month.
That is the message from Tracey Faulkner, Client Manager at Alexander Accountancy, who is supporting clients with adapting to the new system as new regulations come into effect.
Tracey says: “We are here to help people make the Making Tax Digital for Income Tax changes and assess what needs to be done.
“If you are among those being mandated in April 2026 there is still time, so speak to us about the way forward.”
Making Tax Digital for Income Tax has been launched for sole trader self-employed earners and/or landlords to report income and expenses to HMRC.
From 6 April, sole traders and/or landlords whose gross combined turnover in 2024/25 was over £50,000 will be automatically mandated.
Sole traders, landlords or their agents will need to use software compatible with Making Tax Digital for Income Tax to create, store and file digital records of their self-employment and property income and expenses.
Quarterly updates will need to submitted to HMRC and after the final quarterly a year end return will also need to be submitted in line with how the current self assessment system works.
All payment deadlines remain the same but the government are in consultation in respect of the timing of tax payments made by sole traders and property landlords.
Tracey says many of those impacted by next month’s changes will have been notified. She said: “HMRC has been sending out letters based on turnover figures in the 2024-25 tax returns so you should know if you are affected but if you have not received notification yet, and think you will be mandated, give us a call or email us.
“We understand that many self-employed people or property landlords who don’t have the time or inclination to deal with these new rules so Alexander Accountancy can take that burden away from them. We can offer a bespoke service depending on the individual’s requirements.
“With software packages like Xero there is the ability to scan in documents and records, or we can offer a service to manage manual records.
“The benefits of going digital include getting an up to date picture of your finances, with the quarterly reporting allowing you to see tax liabilities further ahead rather than waiting until the year end.
“There are more deadlines to manage and you may need software training but we have trialled a number of clients who had not previously had to submit digital records and it has proved a success.
“They realised they would not have to do much different in the future but are now compliant with Making Tax Digital for Income Tax.”
Tracey adds: “In April 2027 sole traders and landlords with a gross combined turnover of over £30,000 will come under the Making Tax Digital rules.
“The threshold then drops to £20,000 from April 2028, so we will be working with clients impacted by these changes in the future.”
Alexander Accountancy provides services including tax planning, business advice, budgets and forecasting services, plus the preparation of company accounts. The team are experienced in supporting new start-ups through to established small enterprises looking to scale up.
- For help with Making Tax Digital for Income Tax call 01283 743 851 or email: info@alexander-accountancy.co.uk
