Making Tax Digital for Income Tax

Are you a Sole Trader or Landlord?

Learn how Making Tax Digital for Income Tax could affect you

Significant changes are coming to HMRC Self-Assessment.

It is time to get ahead of the game!

As of April 2026, HMRC will introduce significant changes to how self-assessment works for domestic and foreign Sole Traders and Landlords.

 These updates are likely to impact how you manage your record keeping.

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Key Changes:

As of 6th April 2026, specific taxpayers will be required to submit quarterly reports through the Making Tax Digital (MTD) system for Income Tax. Here is a brief breakdown of the key details you should be aware of:

  • Phase 1: As of 6th April 2026, for those with qualifying income over £50,000
  • Phase 2: As of 6th April 2027, for those with qualifying income over £30,000

Who is affected?

This change will impact sole traders and landlords (both domestic and foreign).

What You Need to Do?

To stay compliant with these new rules, you will need to:

  1. Use MTD-compatible software to report your income and expenses.
  2. Keep digital records of all your financial transactions.
  3. Submit quarterly updates– no tax payments required, but you must keep HMRC in the loop about your income and expenses.
  4. Submit a final tax returnand pay any tax by 31st January the following year. This includes all sources of income.

You can also choose to volunteer to sign up for MTD if you meet the criteria. Click on this link for more details https://www.gov.uk/guidance/sign-up-your-business-for-making-tax-digital-for-income-tax.

Reporting Deadlines:

Here are the key reporting periods and deadlines for 2026/2027:

  • 06/04/26 - 05/07/26 → Report by 07/08/2026
  • 06/07/26 - 05/10/26 → Report by 07/11/2026
  • 06/10/26 - 05/01/27 → Report by 07/02/2027
  • 06/01/27 - 05/04/27 → Report by 07/05/2027
  • Final period 06/04/26 - 05/04/27 → Report by 31/01/2028 and pay tax

How can Aston Shaw help?

Aston Shaw can take the hassle away from complying with these changes. If you meet the above criteria, we will contact you directly to guide you through the process and help you enrol on HMRC’s new system.

But, if you are expecting a significant change in your income this year compared to last year and you are getting close to the £50,000 threshold, please get in touch with us. We will also recommend the best software for your needs – rest assured, everything we recommend has been thoroughly tested by our team.

Got any questions? We are here to support you every step of the way. Please feel free to reach out to us for expert guidance and peace of mind. Email taxadvisory@astonshaw.co.uk now to find out how we can help.

For more information, you can visit the following HMRC links:

Let’s get ready for these changes together!

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