Making Tax Digital (MTD) for Income Tax is the biggest change to Self Assessment in decades, and it’s now underway. If you’re a sole trader or landlord in Sevenoaks, Kemsing or the wider West Kent area, here’s what it means for you and when it applies.

What is Making Tax Digital for Income Tax?

Under MTD, sole traders and landlords keep their business and property records digitally. They then send HMRC a short summary every quarter using compatible software, instead of reporting everything once a year. You still finish the year with a final tax return, which is also submitted through software.

When does it apply to you?

Whether you’re in scope depends on your qualifying income. This is your total income from self-employment and property before expenses, or your turnover rather than your profit. HMRC checks it using the tax return for an earlier year:

  • over £50,000 in 2024/25: MTD applies from 6 April 2026
  • over £30,000 in 2025/26: MTD applies from 6 April 2027
  • over £20,000 in 2026/27: MTD applies from 6 April 2028

Income from both sources counts together. For example, a self-employed tradesperson with £18,000 of turnover who also lets a flat for £14,000 a year has qualifying income of £32,000, so they would need to join from April 2027. HMRC writes to people it thinks are in scope, but it’s worth checking your own figures rather than waiting for a letter.

Quarterly updates: what and when

Once you’re in MTD, you send four quarterly updates a year. Using the standard tax-year periods, these are due by:

  • 7 August (for the quarter to 5 July)
  • 7 November (for the quarter to 5 October)
  • 7 February (for the quarter to 5 January)
  • 7 May (for the quarter to 5 April)

The updates are summaries of income and expenses, not full tax returns, and you don’t pay tax with each one. You then submit your final return by 31 January after the end of the tax year, and that is still the date your tax is due.

Choosing software

You’ll need HMRC-recognised software that can keep digital records and talk to HMRC. Options range from full bookkeeping packages to simpler apps, and some landlords use “bridging” software alongside spreadsheets. The right choice depends on how many transactions you have and how comfortable you are with technology. HMRC publishes a list of compatible products on GOV.UK.

What to do now

  • Work out your qualifying income from your latest tax returns.
  • If you’re likely to be caught from April 2027, plan to start keeping digital records from that date and get familiar with the software beforehand.
  • Consider a separate bank account for your business or lettings to make record-keeping easier.
  • Get into the habit of recording income and expenses regularly, rather than once a year.
  • Sign up for MTD through GOV.UK when you’re ready, or ask your accountant to do it for you.

Who doesn’t need to join (yet)?

Some people are exempt or not yet included. These include those under the relevant threshold and partnerships, which have not yet been brought in. Some people can also apply for an exemption if using digital tools isn’t practical for them, for example because of age, disability or location. If you think this applies to you, talk to us and we can help you check.

How Coplestons can help

We’re based in Kemsing and work with sole traders and landlords across Sevenoaks and West Kent. We can:

  • check whether and when MTD applies to you
  • help you choose and set up suitable software
  • sign you up with HMRC
  • prepare and submit your quarterly updates and final return, or check your own before they go
  • keep you up to date as the rules develop

Talk to us about Making Tax Digital

Don’t leave it until the first deadline. Call us on 01732 762886, email info@coplestonsaccountants.com or contact us online, and see our full range of services. We’re open Monday to Friday, 9am to 5pm, at Suite 2, 9 West End, Kemsing, Sevenoaks, Kent TN15 6PX.