From April 2026, the next stage of Making Tax Digital (MTD) will come into effect for sole traders and landlords with income over £50,000. This means those affected will need to:
- Keep digital business records
- Use MTD-compatible software to send quarterly updates to HMRC, instead of submitting one annual Self Assessment return
This marks a significant change in how income tax will be reported, and it’s something to start preparing for now.
Who will be affected?
If your total income from self-employment and/or property exceeds £50,000, you’ll be required to comply with the new MTD rules from April 2026. Those with income over £30,000 will follow in April 2027.
HMRC will be writing directly to individuals they believe are affected, so keep an eye out for a letter over the coming months.
What Nordens is doing:
We’re currently putting a plan in place for how we will support clients through this change, and we’ll be sharing more details on our MTD service options later this year. In the meantime, if you receive a letter from HMRC or have any questions about what this means for you or your business, please don’t hesitate to get in touch- we’re here to help guide you through it.
