Making Tax Digital (MTD): What Landlords and Sole Traders Need to Know

Making Tax Digital (MTD) is a government initiative aimed at simplifying and modernising the way tax is reported in the UK. If you're a landlord or sole trader, understanding these changes is essential to stay compliant and avoid penalties — and we’re here to help make it simple.

What Is Making Tax Digital?

MTD requires individuals and businesses to keep digital records of income and expenses. Instead of submitting a single tax return once a year, you’ll now need to send quarterly updates to HMRC, followed by a final end-of-year declaration.

This system is designed to help you stay on top of your finances, reduce errors, and make smarter business decisions throughout the year.

🏠 How These Changes Will Affect Landlords

If you’re a landlord earning over £50,000 annually, from April 2026, you’ll need to:

• Keep digital records of your rental income and expenses

• Submit quarterly updates to HMRC

• File a final declaration at the end of the tax year

  
  

💼 How These Changes Will Affect Sole Traders

Sole traders with income over £50,000 will also be affected from April 2026, with the threshold reducing to £30,000 in April 2027. You’ll be required to:

• Maintain digital records of your business income and costs

• Send quarterly updates to HMRC

• Submit a final report confirming your annual income

  
  

How MW Tax Can Help

Navigating MTD doesn’t have to be stressful. At MW Tax we take care of everything, so you can focus on running your business or managing your property portfolio. Here’s how we support you:

✅ Expert Guidance – We explain what MTD means for you, in plain English

✅ Smart Setup – We provide and manage the right MTD-compliant digital tools

✅ Quarterly Reporting – We handle the submissions to HMRC, on time

✅ Final Declarations – We prepare your end-of-year summary, ensuring accuracy and compliance

Don’t wait until the last minute. Get ahead of the April 2026 deadline and let us simplify your tax process.

📞 Contact MW Tax today to get started — we’ll make MTD easy and stress free.

👉 www.mw-tax.com | 📧 enquiries@mw-tax.com | 📱 Call us now - 01790 378487