From April 2026, sole traders and landlords earning £50,000 or more must follow the rules of Making Tax Digital (MTD) for Income Tax.
The deadline may seem a while away, but getting ready early will save time and stress.
Get your records in one place
Your financial records should be digital and easy to access.
If you are still using paper files or saving receipts across various devices, now is the time to move everything to one secure system.
Make sure your software is suitable
You will need software that can link directly with HM Revenue & Customs (HMRC).
If you use Excel, you must also use a ‘bridging tool’ to connect it properly.
Some cloud accounting platforms come with this built in and are easier to use overall.
If you require support with this, we can provide advice on the best software for your business.
Check how your current processes work
Look at how your business tracks money in and out.
If parts of your workflow are disconnected or manual, it increases the risk of missing something.
Try to make your systems talk to each other.
Train your team to use the new tools
If you have staff, they should be shown how to use your chosen MTD software.
Make sure someone is responsible for keeping everything up to date, and review this regularly.
Prepare a dry run before the rules change
You do not have to wait for the deadline.
Try preparing a few practice reports now to spot any problems early.
Need help setting things up? Our team is ready to guide you through the changes.
