Making Tax Digital Support for Businesses, Sole Traders and Landlords
Stay compliant with HMRC's Making Tax Digital requirements with expert bookkeeping support from ST Bookkeeping & Payroll Ltd.
Whether you are already using accounting software or need help getting started, we will guide you through every step of the transition.
We can help you stay compliant by:
- Setting up MTD-compatible bookkeeping systems
- Maintaining accurate digital records
- Supporting self-employed individuals and landlords with MTD for Income Tax
- Submitting VAT returns through approved software
- Providing ongoing guidance and support with HMRC requirements
Whether you are a sole trader, landlord, freelancer, or small business owner, we can help make the transition to digital tax reporting simple, efficient, and stress-free.
Book Your Free Consultation today.
What is Making Tax Digital?
Making Tax Digital (MTD) is a government initiative in the UK that is transforming the way businesses and individuals maintain records and submit tax information to HMRC.
From April 2026, many sole traders and landlords will be required to maintain digital records and submit updates to HMRC via compatible accounting software if their combined annual business and/or property income exceeds £50,000.
This requirement currently applies to sole traders and landlords and does not apply to limited companies, partnerships or LLPs under the Income Tax rules.
What Does Making Tax Digital Mean to You?
With the current and upcoming changes, sole traders and landlords who are affected will have to instead submit one annual Self Assessment tax return. They will be required to:
✔ Keep digital financial records
✔Submit quarterly updates to HMRC
✔Complete an End of Period
✔Statement (EOPS)
✔Submit a Final Declaration at the end of the tax year, similar to the way in which a tax return is filed.
✔You will also need to use MTD compatible software such as Xero or QuickBooks, which helps keep your records accurate, reduces the risk of errors and gives you a clearer picture of your tax position throughout the year. This will help individuals to budget and plan for taxes owed.
Who is Affected?
You may be wondering whether this affects your business.
Making Tax Digital for Income Tax currently applies to:
Sole traders with qualifying business income above the threshold, currently £50,000
Landlords with qualifying rental income above the threshold
Individuals with a combined business and property income exceeding £50,000 per year
Further phases of Making Tax Digital are expected to bring more taxpayers into the system over the coming years, 2027 and 2028.
How ST Bookkeeping & Payroll Ltd Can Help
Preparing for Making Tax Digital does not have to be complicated.
We can help you:
✔ Set up Xero or QuickBooks
✔ Organise and maintain compliant digital records
✔ Keep your bookkeeping accurate and up to date
✔ Submit quarterly updates where applicable
✔ Support you throughout the transition to Making Tax Digital
✔ Provide ongoing bookkeeping and compliance support.
Need help preparing for Making Tax Digital?
Book a FREE 30-minute consultation, and we will explain what the new rules mean for you, whether you are affected, and how we can help you stay compliant.
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Frequently Asked Questions
What is Making Tax Digital (MTD)?
Making Tax Digital is HMRC's digital tax system that requires certain taxpayers to keep digital records and submit information using compatible software.
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Frequently Asked Questions
Who needs to comply with Making Tax Digital?
From April 2026, many sole traders and landlords with qualifying business and/or property income over £50,000 will need to comply. Further phases are planned in later years, with 2027 mandatory threshold income of £27,000
2028, mandatory threshold income of £28,000.
Its very important to be mindful of these dates and threshold income.
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Annual Self Assessment Tax Return
Will I still complete a Self Assessment tax return?
You will continue to have year-end reporting obligations, but MTD introduces quarterly updates and an End of Period Statement as part of the reporting process.