REB Bookkeeping Services

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.

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.

How REB Bookkeeping Services Can Help

I provide complete Making Tax Digital support, including:

• Setting up HMRC-compatible bookkeeping software

• Assistance with QuickBooks, Sage and FreeAgent

• Maintaining accurate digital records

• Preparation and submission of quarterly updates

• End-of-year Final Declaration support

• Ongoing bookkeeping and compliance assistance

• Training and guidance for businesses moving from paper records

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

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?

In some cases, spreadsheets can be used alongside bridging software, but most businesses find dedicated bookkeeping software easier and more efficient.

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.