Making Tax Digital: What Sole Traders and Landlords Need to Know for 2026 and Beyond

Are you a sole trader or landlord? Important changes are coming! HMRC’s Making Tax Digital (MTD) initiative is expanding, and it’s crucial to get prepared. In this blog post, we’ll break down the key changes, explain what they mean for you, and how we can help you navigate this transition smoothly.

Key Changes Coming in April 2026:

Digital Record-Keeping & Quarterly Submissions:
From April 2026, sole traders and landlords with a turnover exceeding £50,000 will be required to keep digital records and submit quarterly income and expense summaries to HMRC. In April 2027, this threshold will further reduce to £30,000. If your turnover falls within these thresholds, you will be affected, either in 2026 or 2027.

What Does This Mean for Your Business?

If you’re currently using manual record-keeping methods, this will require a significant shift. You’ll need to adopt digital accounting software that is MTD-compliant. Popular options include Xero, which many of our clients use, and other reputable software providers.

Benefits of Making Tax Digital:

• Improved Accuracy: Digital records reduce the risk of errors and ensure your financial data is more accurate.
• Real-Time Insights: Access to real-time reports on your profits and expenses allows for better business decision-making and future planning.
• Increased Efficiency: Streamlined processes and reduced paperwork save you time and effort.

How We Can Help You Prepare:

We understand that transitioning to MTD can seem daunting. That’s why we’re here to provide comprehensive support:

• Software Setup & Training: We can assist you in selecting the right software and provide training on how to use it effectively, particularly with Xero. We ensure your software is correctly configured and MTD-compliant.
• Bookkeeping Services: If you prefer, we can handle your bookkeeping, ensuring your records are accurate and compliant with the new regulations.
• Agent Services Account Registration: We will assist you with registering on our Agent Services Account and obtain the needed authorisations, to allow us to submit your MTD submissions.

Getting Started Now:

While April 2026 may seem distant, early preparation is key to a smooth transition.
Contact us: We can help you determine the best approach for your business.
Agent authorization: You will need to authorise us to submit on your behalf.
Software selection: We can help select and set up the correct software.
Determine your support needs: Decide how much help you need from us.

Don’t wait until the last minute! Contact RDG Accounting today for expert guidance and support in preparing for Making Tax Digital. We’re here to help you navigate these changes with confidence.

Schedule a consultation today by calling Russell or booking an appointment online.

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