What Landlords and Sole Traders Need to Do Before April 2027
Making Tax Digital (MTD) continues to represent one of the biggest changes to the UK tax and self-assessment system in recent years. Whilst the next phase doesn’t become mandatory until April 2027, certain landlords and sole traders should start preparing now.
What’s changing?
From 6 April 2027, taxpayers with qualifying income above £30,000 will be required to comply with MTD for Income Tax. Rather than submitting one annual tax return, affected taxpayers will need to maintain digital records and submit quarterly updates to HMRC using compatible software.
Why preparation matters
Many landlords and sole traders still rely on spreadsheets or manual record keeping. Transitioning to a fully digital process takes time and often highlights areas where bookkeeping processes can be improved. We feel that those that prepare early are likely to experience a much smoother transition and will see the benefits of a digital landscape, including:
- More accurate financial records
- Better visibility of reporting and management information
- Reduced risk of errors
- Improved cashflow management
- Easier tax compliance
How can you prepare?
- Review your current bookkeeping processes
- Identify whether your software is MTD compatible
- Ensure records are maintained digitally
- Seek advice before the mandatory start date
- Use the transition period to gain better visibility over financial performance
How Bryden Johnson can help
We are a Xero Gold Partner and as Chartered Accountants and Business Advisers, we help clients to embrace technology, to help them work smarter and make better-informed decisions, by implementing digital accounting solutions, improved bookkeeping processes and maintaining full compliance, all whilst gaining better visibility over financial performance.
Contact Us if you would like to see how we can help you navigate MTD.