From April 2026, if you are a sole trader or landlord and earn over £50,000 from self-employment or property, you’ll need to keep digital records and send quarterly updates to HMRC, with the entry point dropping to £30,000 in 2027 and £20,000 in 2028. So, how will things change once Making Tax Digital (MTD) for Income Tax has been introduced? How will sole traders and landlords be required to keep financial records, and – crucially – report information so that HMRC can work out how much tax is owed? Will they still need to file self assessment tax returns?

In this first episode in a four-part mini-series on MTD for Income Tax, we speak to chartered certified accountant Jo Nockels FCCA, FMAAT of TaxAssist Accountants, a network of accountants across the UK that delivers accounting and tax services to small-business owners. Here Jo explains how sole traders and landlords will be affected by MTD for income tax changes.

Thanks to TaxAssist Accountants for sponsoring this mini-series on MTD for Income Tax. TaxAssist is currently offering listeners the opportunity to register for their free webinar for further advice on Making Tax Digital for Income Tax. You’ll get expert guidance on how to digitise your records and meet your obligations, as well as the opportunity to ask any burning questions. Click here to register.

Show notes for the episode can be found on the Start Your Own Business podcast website. Visit Start Up Donut and sign up to the Donut newsletter for more free start-up news, advice and special offers to help you save time and money.