HMRC has conducted a review of sole traders and landlords who have total income of over £50,000 in their 2024-2025 Self Assessment tax return and will contacting them by letter with details of how their Self Assessment will change for the April 2026-April 2027 tax year. The letter will contain information on Making Tax Digital and what they need to do to ensure they’re ready for the change.
If you are a sole trader or landlord with an annual income of over £50,000 the 2025-2026 tax year will be final time you’re able to submit your Self Assessment tax return using the existing process. HMRC will begin contacting those who are affected from April 2025, so if you’re in this category it’s important to keep a look out for a letter. From 6th April 2026 you must use a Government approved software to submit digital records to HMRC four times every year, plus a final declaration (though you will still only pay your tax bill as you do currently). From April 2027 MTD will be rolled out to include all landlords and sole traders with an income over £30,000.
Here at Gooding Accounts we’ve been working hard behind the scenes to prepare for the changes. Our Personal Tax experts have been keeping on top of the news from HMRC on Making Tax Digital so you don’t have to! They’ve also been busy researching all of the available software to find those that will suit our clients’ best. We understand that every business is different, so we’ll be offering a range of solutions for you to choose from when Making Tax Digital comes into effect. We’ll also be asking a number of our clients to take part in a pilot scheme, run by HMRC, to allow us to finalise our internal processes and make sure we’re prepared well before the changes become mandatory in April 2026.
Our team will be in touch with all clients who will be affected by the change well in advance of the April 2026 deadline to ensure they’re all fully informed of what the change will mean for them. We’ll be here to guide you every step of the way, from helping you to decide which software to choose to keeping track of your quarterly submissions to ensure they’re completed in plenty of time.
Our friendly and helpful approach to accountancy, ensures that you understand and are in tune with your finances. Our committed team will communicate with you every step of the way so that you understand the position of your financial affairs – get in touch today.
