Landlords, sole traders and self-employed individuals across the North of England are being urged to prepare for one of the biggest changes to the UK tax system in decades.
From April 2026, many individuals will move to Making Tax Digital (MTD) for Income Tax, a new HMRC system that will significantly change how tax information is reported.
At VA Accountants, we are already helping businesses and landlords prepare for this transition to ensure they remain compliant and avoid unnecessary stress as the new rules come into force.
What is Making Tax Digital (MTD)?
Making Tax Digital for Income Tax is part of HMRC’s long-term plan to modernise the UK tax system by moving away from the traditional once-a-year tax return.
Under the new MTD system, affected taxpayers will be required to:
- Keep digital financial records
- Use HMRC-approved accounting software
- Submit quarterly updates to HMRC
- Complete a final end-of-year declaration
This represents the largest change to personal tax reporting since Self Assessment was introduced in 1997.
For many landlords and self-employed individuals, the familiar annual tax return will effectively be replaced by regular digital reporting throughout the year.
Who Will Need to Comply with Making Tax Digital?
The rollout of Making Tax Digital for Income Tax will happen in phases.
April 2026
Landlords, sole traders and self-employed individuals with qualifying income over £50,000 will be required to comply.
April 2027
The threshold will reduce to £30,000.
April 2028
The threshold will reduce again to £20,000.
HMRC estimates that around 864,000 individuals will fall within the first phase, with the number expected to rise to around 2.9 million taxpayers within three years.
What Does Making Tax Digital Mean for Landlords and Sole Traders?
For many people, this change means moving away from spreadsheets, paper records or once-a-year bookkeeping.
Instead, financial records will need to be kept digitally and updated regularly using compatible accounting software.
While this will require some adjustments, there are also several benefits.
Benefits of Making Tax Digital
Making Tax Digital can provide:
- Better visibility of your business performance
- More accurate financial records
- Improved tax planning throughout the year
- Less pressure at the end of the tax year
- Greater understanding of your tax position
Regular updates can also help business owners make better financial decisions and manage cash flow more effectively.
How to Prepare for Making Tax Digital
Although the first phase begins in April 2026, preparing early will make the transition much easier.
Here are some steps landlords and self-employed individuals should consider now.
- Check Your Income Levels
Review your income to see whether you will fall within the £50,000 threshold in 2026.
- Plan for Future Threshold Changes
Even if you are not affected immediately, you may fall within scope when the thresholds reduce in 2027 or 2028.
- Move to Digital Accounting
Ensure you are using HMRC-approved software that is compatible with Making Tax Digital.
- Seek Professional Advice
There may be limited exemptions, so speaking with an accountant can help ensure you remain compliant and prepared.
How VA Accountants Can Help
At VA Accountants, we specialise in helping landlords, sole traders and small businesses prepare for changes to tax legislation.
We support clients across the North of England with:
- MTD-compatible bookkeeping systems
- Setup of digital accounting software
- Quarterly reporting support
- Tax planning and compliance
- Ongoing accountancy advice and support
Our aim is to ensure that the transition to Making Tax Digital is simple, stress-free and fully compliant.
Don’t Leave Making Tax Digital Until the Last Minute
Although April 2026 may seem some time away, many businesses will need to change how they record their finances well before the deadline.
Starting early will allow you to:
✔ Avoid last-minute disruption
✔ Ensure your systems are compliant
✔ Gain better financial insight into your business
Speak to VA Accountants About Making Tax Digital Today
If you are a landlord, sole trader or self-employed, now is the time to start preparing for Making Tax Digital.
The team at VA Accountants can guide you through the process and help you put the right systems in place.
Book Your Free Initial Consultation
Contact VA Accountants today to discuss how Making Tax Digital will affect you and how we can help you prepare.
📞 Speak to our team today 01642 686414
📧 Email us for advice office@vickyanderson.co.uk
📅 Book a consultation with our accountant
Let VA Accountants take the stress out of Making Tax Digital so you can focus on running your business.