REB Bookkeeping Services

                                  UPDATE: 3rd August 2026 

HMRC has started automatically signing up some sole traders and landlords for Making Tax Digital (MTD) from September 2026.

If your qualifying income was over £50,000 in 2024/25, you should already be using MTD for Income Tax.

Not sure whether MTD applies to you or what you need to do? 

REB Bookkeeping Services can help you get organised and ready.

📩 Get in touch today for a friendly chat

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Making Tax Digital Support for Sole Traders and Landlords

Making Tax Digital (MTD) for Income Tax is one of the biggest changes to the UK tax system in recent years.

As an HMRC Authorised Tax Agent and ICB Licensed Bookkeeper, I can help sole traders and landlords across Swansea Neath Port Talbot and South West Wales prepare for the new digital reporting requirements and remain fully compliant with HMRC.

Whether you need ongoing bookkeeping, help choosing the right software or support with your quarterly submissions, I'll guide you through the process with straightforward advice tailored to your circumstances. 

What is Making Tax Digital for Income Tax?

Making Tax Digital (MTD) is HMRC's initiative to move tax reporting online.

Under the new rules, eligible sole traders and landlords will be required to:

• Keep digital records of income and expenses

• Use HMRC-compatible software

• Submit quarterly updates to HMRC

• Complete a Final Declaration at the end of the tax year

The aim is to make tax reporting more accurate and reduce errors.

When Does Making Tax Digital Start?

MTD for Income Tax is being introduced in phases based on your total gross income from self-employment and property combined.

You must comply from:

• April 2026 if your gross income exceeds £50,000

• April 2027 if your gross income exceeds £30,000

• April 2028 if your gross income exceeds £20,000

If you're unsure whether MTD applies to you, I can review your circumstances and advise you.

Qualifying income means gross self-employment and property turnover before expenses.

Employment income, dividends, and savings interest don’t count toward the threshold.

Quarterly Deadlines 2026/27

7 August 2026 – 6 April to 5 July - open now

7 November 2026 – 6 July to 5 October

7 February 2027 – 6 October to 5 January

7 May 2027 – 6 January to 5 April

31 January 2028 – Final Declaration

Quarterly updates cover self-employment and property income and expenses only.

Your Final Declaration adds dividends, savings interest, employment income, capital gains, reliefs, and allowances, replacing Self Assessment for MTD users.

Flexible Making Tax Digital Support

Every business is different, so I don't believe in a one-size-fits-all approach.

Some clients will benefit from using bookkeeping software such as FreeAgent, Sage or QuickBooks for all of their records. Others may have much simpler requirements and can remain compliant using a combination of spreadsheets and HMRC-compatible bridging software.

I'll recommend the solution that best suits your business, your budget and your HMRC obligations.

How REB Bookkeeping Services Can Help

I provide complete Making Tax Digital support, including:

• Setting up HMRC-compatible bookkeeping software.
• Support with FreeAgent, Sage and QuickBooks.
• Maintaining accurate digital records.
• Preparing and submitting quarterly updates.
• End-of-year Final Declaration support.
• Ongoing bookkeeping and compliance assistance.
• Training and guidance for businesses moving from paper records or spreadsheets.
• Advice on the most practical and cost-effective MTD solution for your circumstances.

Whether you're currently using spreadsheets, paper records or accounting software, I can help you transition smoothly to the new requirements.

A Cost-Effective Solution for Some Landlords

Every client's circumstances are different, so I don't believe in recommending the same software solution for everyone.

If you run a sole trader business and also own a straightforward jointly owned rental property, it may be possible (where the Joint Property Easement applies) to:

Continue using your existing HMRC-compatible bookkeeping software for your business.

Keep your rental property records in a digital spreadsheet.

Submit your quarterly property updates using HMRC-compatible bridging software.

Let me prepare and submit your end-of-year Final Declaration, bringing together your business records with the property information already held by HMRC to ensure everything is accurate and compliant.

This flexible approach can help reduce software costs while ensuring you meet your Making Tax Digital obligations. I'll always recommend the most practical and cost-effective solution based on your individual circumstances, giving you the confidence that your records are accurate and your HMRC reporting requirements are met.

Who Will Be Affected?

Making Tax Digital for Income Tax is expected to affect:

• Sole traders

• Self-employed individuals

• Landlords with rental income

• Individuals with combined self-employment and property income above the relevant thresholds

Benefits of Preparing Early

Getting ready for MTD before the deadline can help you:

• Avoid last-minute stress

• Improve record keeping

• Stay compliant with HMRC requirements

• Gain a clearer understanding of your business finances

• Reduce the risk of errors and penalties

Frequently Asked Questions

Do I need special software for Making Tax Digital?

Yes. HMRC requires digital records to be kept using compatible software. I can recommend and help set up the most suitable solution for your needs.

Can I still use spreadsheets? 

Yes, in some circumstances.

For straightforward businesses or qualifying jointly owned rental properties, a digital spreadsheet used alongside HMRC-compatible bridging software may be an appropriate solution.

I'll advise you whether this option is suitable for your circumstances.

What happens if I don't comply with MTD?

Failure to meet HMRC requirements may result in penalties and additional administrative burdens.

Can REB Bookkeeping manage my quarterly submissions?

Yes. I can prepare and submit your quarterly updates on your behalf, helping ensure your records remain accurate and compliant.

Need Help Preparing for Making Tax Digital?

If you're a sole trader or landlord in Swansea, Neath Port Talbot or South West Wales, contact REB Bookkeeping Services today to discuss how I can help you prepare for Making Tax Digital and stay compliant with HMRC.