Big Changes Are Coming for Landlords and Sole Traders: Are You Ready for Making Tax Digital?
Are You Ready for Making Tax Digital?
If you’re a landlord or sole trader in the UK, it’s time to get ahead of the curve. The way you report your income and expenses to HMRC is about to change—dramatically with making tax digital and the notices are going out in April 2025.
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is coming into force, and it will impact how you manage your finances, submit tax information, and run your business.
🔍 What is Making Tax Digital?
MTD is HMRC’s initiative to digitise the UK tax system. The aim? To make tax administration more efficient, reduce errors, and encourage real-time reporting. It’s already in place for VAT-registered businesses. Now, it’s the turn of sole traders and landlords.
📅 Key Dates You Need to Know
- April 2026 – Making Tax Digital (MTD) for ITSA becomes mandatory for:
- Sole traders and landlords with annual income over £50,000
- April 2027 – The threshold drops to those earning over £30,000
- (Future plans suggest it could extend to £20,000+ in the following years)
If your income is below these thresholds, you can continue using Self Assessment—for now. But change is clearly on the horizon for everyone.
🧾 What Will You Need to Do Differently?
Under MTD for ITSA, the annual tax return becomes a thing of the past. Instead, you’ll be required to:
✅ Keep digital records of income and expenses
✅ Use MTD-compatible software
✅ Submit quarterly updates to HMRC
✅ Send a final end-of-year statement to confirm your total income
This is a big cultural shift, especially for small businesses and property owners who are used to paper records or spreadsheets.
Want to learn more, visit the HMRC website for official guidelines.
🚨 Why You Need to Prepare Now for Making Tax Digital
Although the changes don’t kick in until 2026, HMRC will begin contacting those affected from April 2025. And if you’re not prepared, the transition could become stressful and costly.
- Are you still using paper records or Excel?
- Do you know which software is MTD-compliant?
- Do you understand how quarterly updates will impact your cash flow and admin time?
If the answer to any of these is “no” or “not sure”, now is the time to take action.
💬 How Jenner’s Can Help
At Jenner’s Tax and Business Advisers, we’re already helping clients prepare for these changes:
- We’ll guide you through the best software options
- Set up your records to be fully compliant
- Help you understand what quarterly submissions involve
- Provide training, support and ongoing advice as MTD becomes part of your routine
💡 Don’t Wait – Be Ready
Change is coming whether we like it or not. But with the right support and a little forward planning, you can turn it into an opportunity to simplify, streamline, and take greater control of your business finances.
📞 01432 379988 or Book a free discovery call with Clare Jenner today to make sure you’re ready for Making Tax Digital.
