HMRC have introduced a new service for landlords and sole traders called ‘Making Tax Digital’ (MTD). The service will require sole traders and landlords to prepare quarterly reports digitally of income and expenses using HMRC recognised software like Quickbooks or Xero. Spreadsheets can also be prepared and imported into software.

The quarterly reports will be made in addition to the usual tax return submission which will be due by 31 January the following year along with any tax that is payable.

There is a staggered entry requirement into the new Making Tax Digital service whereby if your turnover from rental properties and/or self-employment exceeds £50,000 in the tax year ended 5th April 2025, then you will be legally required to use HMRC’s Making Tax Digital service from April‌‌‌ 2026. If not, and your turnover exceeds £30,000 in the tax year ended 5th April 2026, then you will be legally required to use the service from April‌‌‌ 2027. If your turnover exceeds £20,000 in the tax year ended 5th April 2027, then you will be required to use the service from April‌‌‌ 2028.

If you would like to know more and find out how we can assist you meet the requirements of Making Tax Digital, please complete the below form to request a free 15 minute consultation.