Published: February 11th, 2026
Self-employed businesses and landlords across the region are being urged to get ready for the biggest change to the way they report their tax in a generation.
The new Making Tax Digital regime for sole traders and landlords starts to come into force from April – changing completely the way financial records are kept and how tax information is submitted.
The first phase of the new regime launches on April 6. From then any self-employed businesses and landlord must use HMRC-compliant software to submit records if their annual income from self-employment and property is over £50,000.
The scheme will then be extended to include those with a turnover of between £30,000 and £50,000 from April 2027 and those between £20,000 and £30,000 in April 2028.
Whilst the deadline for submitting an annual tax return will not change, the requirement for quarterly updates and digital accounting software is a significant development.
Here are the key steps sole traders and landlords can take now to get ready for the change:
- Check if you’re affected. If your total self-employed or rental income is above £50,000 you must comply from this April.
- Choose compatible software. If you rely on spreadsheets or paper files you will need to move to a digital system that can connect directly to HMRC. There are many options on the market and most offer simple tools for invoicing, expense tracking and bank reconciliation. The key is to choose software that suits the way you work rather than trying to reshape your business around a system that feels unnatural.
- Think about your processes. Quarterly updates will require information to be accurate and up to date. That means setting aside regular time to record income and expenses rather than leaving everything until the year end. For small businesses it means keeping receipts, logging mileage and reconciling bank transactions consistently.
- Speak to your accountant or adviser. They can help you choose the right software, set up your digital records and understand what HMRC will expect from you. Starting now will save stress later and put you in control of the change rather than reacting to it at the last minute.
Further advice and help is available on the Government’s website at https://www.gov.uk/government/collections/making-tax-digital-for-income-tax
