The first Making Tax Digital (MTD) for Income Tax deadline is fast approaching, and many sole traders and landlords will soon need to change the way they keep records and submit information to HMRC.

If you're affected by the new rules, now is the time to start preparing.

What is Making Tax Digital for Income Tax?

Making Tax Digital is part of HMRC's initiative to modernise the UK tax system. Under MTD for Income Tax, eligible taxpayers will be required to:

  • Keep digital records of income and expenses
  • Use compatible software to manage their accounts
  • Submit quarterly updates to HMRC
  • Complete an annual final declaration

The aim is to make tax reporting more accurate and efficient while helping individuals stay on top of their tax affairs throughout the year.

Who Will Be Affected?

Making Tax Digital for Income Tax will apply to:

  • Sole traders
  • Self-employed individuals
  • Landlords

The requirements will be introduced in phases, depending on your level of qualifying income. If you're unsure whether you'll need to comply, our team can help you determine your position and explain what steps you need to take.

Why Prepare Now?

Although the deadline may still seem some time away, preparing early can make the transition much smoother.

By taking action now, you can:

  • Understand your obligations before the rules take effect
  • Ensure your record-keeping processes are compliant
  • Choose suitable accounting software
  • Avoid unnecessary stress and last-minute changes
  • Gain confidence that your tax affairs are up to date

How We Can Help

At Armstrongs Accountants, we are helping clients prepare for Making Tax Digital and navigate the changes with confidence.

Whether you need advice on software, assistance with digital record keeping, or ongoing support with your quarterly submissions, our experienced team is here to help.

We'll work with you to ensure you're fully prepared and that the move to MTD is as straightforward as possible.

Get in Touch

Don't leave it until the last minute. If you're a sole trader or landlord and would like to understand how Making Tax Digital could affect you, contact our team today.