“Making Tax Digital starts April 2026. Sole traders earning over £50,000 must keep digital records and submit quarterly updates. We can help you prepare.”
Quote by Nigel Holland BA (Hons) FCA.
Sole traders urged to prepare now for Making Tax Digital changes from April 2026
The Making Tax Digital for Income Tax rollout is accelerating, with HMRC reminding over 860,000 sole traders and landlords that new rules start from April 2026. Anyone with self-employment or property income above £50,000 must keep digital records and send quarterly updates to HMRC. Although penalty points will not apply during the first year, the administrative burden will still increase significantly. Therefore, businesses should begin adapting their bookkeeping processes immediately.
This digital tax change will require reliable systems, accurate record-keeping and regular reporting. Many sole traders currently rely on spreadsheets or manual methods, which may become inefficient or risky. In addition, quarterly submissions mean tax planning must become more proactive rather than reactive.
At Holland & Co, we can help clients prepare through a tax review (£200 + VAT), advice on adopting . We can also review business structure, improve financial systems, and ensure compliance with the new digital reporting requirements.
• Over 860,000 taxpayers affected by Making Tax Digital for Income Tax.
• Applies to income above £50,000 from April 2026.
• Quarterly reporting will replace annual submissions.
• First year penalty points will not apply.
• Early preparation reduces compliance risk and admin stress.
Making Tax Digital, Sole traders, HMRC, Digital bookkeeping, Quarterly tax reporting
