Making Tax Digital

Making Tax Digital is changing how sole traders and landlords report their income to HMRC.

It means keeping digital records and submitting updates throughout the year using approved software instead of filing just one annual tax return.

If you’re not sure whether Making Tax Digital applies to you, we’ll help you understand what’s changing and what you need to do next.

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Does Making Tax Digital apply to you?

Making Tax Digital applies to sole traders and landlords whose qualifying income is above the HMRC threshold. The income threshold is based on the total amount you’re paid before expenses, not your profit.

From April 2026

Sole traders and landlords with income over £50,000.

From April 2027

Sole traders and landlords with income over £30,000.

From April 2028

Sole traders and landlords with income over £20,000.

What’s changing with Making Tax Digital?

Instead of submitting one Self Assessment tax return each year, you’ll need to:

  • Keep digital records of income and expenses

  • Submit quarterly updates through compatible software

  • Complete a final declaration at the end of the tax year

Making Tax Digital changes how your information is reported. It does not change how your tax is calculated.

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What Making Tax Digital means day to day

This means getting into a better routine with your records.

You’ll need to keep your income and expenses updated digitally, use approved software and submit information to HMRC throughout the year.

That might sound like a lot, but with the right setup it can make things easier. You can upload receipts from your phone, send invoices on the go and keep a clearer view of what’s happening with your money.

How AFor can support you

Whether you need a quick chat, help choosing software or full support with your quarterly submissions, we can help you get ready for Making Tax Digital in a way that feels manageable.

Software setup

We’ll help you get set up with HMRC-recognised software. AFor works with Xero, and we’ll guide you through what you need.

Digital records

We’ll help you move from paper, spreadsheets or messy records to a clearer digital setup.

Quarterly submissions

We can support you with the updates that need to be submitted to HMRC throughout the year.

Final declaration

We’ll help with the final declaration at the end of the tax year, so everything is completed properly.

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Masterclass on making tax digital for sole traders and landlords, changes to HRMC Tax rules.

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Making Tax Digital FREE Online Masterclass

What the new HMRC rules mean for Sole Traders & Landlords

New tax rules are coming in April 2026 for sole traders and landlords.

In this practical FREE online session, we’ll explain what Making Tax Digital means, what’s changing, and what you need to do to prepare.

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Watch our YouTube series on Making Tax Digital

At AFor, we're here to help you get ready for Making Tax Digital (MTD) in a straight-forward and practical way.

Watch our series on YouTube to understand how Making Tax Digital might affect your business, and what your next steps are.

Frequently Asked Questions

  • You must use HMRC-recognised software that allows digital record keeping and direct submission. We recommend Xero, but there are others such as QuickBooks, Sage and FreeAgent, which are all listed on the HMRC government website.

    If you’re not sure which one is right for you, then we’re more than happy to help set it up for you.

  • No. MTD does not increase your tax rate or the amount you owe. It changes how and when information is submitted.

  • No. You’ll be able to download an app to your phone or tablet, and do everything from there. If tech gives you a bit of headache, don’t worry, we can sort it out for you.

  • If your income falls below the threshold after entering MTD, your situation will be assessed in line with HMRC guidance. We’ll review this with you and advise based on your circumstances.

  • You may receive a letter from HMRC. If you do, don’t panic, just give us a call and we can help you out.

  • Once registered fThe deadlines are:

    • Q1 (6 April – 5 July): Deadline 7 August

    • Q2 (6 July – 5 October): Deadline 7 November

    • Q3 (6 October – 5 January): Deadline 7 February

    • Q4 (6 January – 5 April): Deadline 7 May

    These deadlines apply once you are registered within Making Tax Digital.

  • Yes. We can manage the quarterly updates and final declaration on your behalf, ensuring everything is submitted accurately and on time.

    You’ll still need to maintain accurate records, but we will guide you and handle the reporting process.

    Just give us a call and we’d be happy to chat through what the best option is for you. 


What people are saying

  • “Allison and the team have provided me with an excellent service since I joined last year. AFor quickly got my accounts in order and offered nothing but support whilst my business was in its infancy.

    My questions are answered promptly, and I feel they are always on hand to lend advice should I need. I look forward to developing my relationship with AFor as my company continues to grow.”

    Richard Denby, Richard Denby Inspection Ltd

  • “I met Allison while performing at a wedding and later found out she was an accountant—just as I needed one. What stood out was her deep understanding of my industry and her warm, approachable demeanor, making it an easy decision to work with her.

    Allison is knowledgeable, compassionate, and highly experienced. I’ve since referred her to a few colleagues, who were just as impressed. Thank you to Allison and the AFor team for handling my bookkeeping and accounting so professionally.”

    Kristi, KriStix Drumming

  • “Allison and the AFor Team are lifesavers. When I started my small business, the self-assessment process felt overwhelming, and I was lost. Allison stepped in and quickly sorted all my paperwork with HMRC.

    Since then, the AFor team has guided me every year, clearly outlining what they need. This has made it much easier to stay organised and avoid the usual December panic. I just send them everything, and they handle the rest. Highly recommended.”

    Emma Sykes, Braeside Bakes

  • “I’m thrilled to have found Allison. From our first meeting, it was clear she is knowledgeable, professional, and truly cares about my financial well-being.

    She simplifies complex tax concepts, making me feel confident and informed in every decision. Her attention to detail and dedication to great service have made managing my finances much easier.

    I highly recommend AFor to anyone seeking expert financial guidance.“

    Claude Dawkins, D & H Joinery

  • “What a great team! I truly love working together with such talented and supportive people. It's amazing to be able to trust someone completely and know they've got your back, no matter what.

    Plus, it's always nice to share a few laughs and have some fun along the way. Thank you for all the hard work, positivity, and for removing so much stress from my life — I couldn't ask for a better accountant.”

    Scott Lumley, Elmwood Properties Ltd

  • “When I needed a new accountant, I turned to Facebook and remembered a post from a few weeks earlier asking for recommendations. One name stood out — ‘AFor’ was mentioned repeatedly. Based on those glowing reviews, I contacted Allison.

    From the first conversation, Allison and her team impressed me with their friendliness and efficiency. I was so relieved to find someone I instantly felt comfortable with. Meeting Allison in person felt like reconnecting with an old friend.”

    Sarah Garg, Celebrant

  • “The firm is very efficient and professional. Nothing is too much trouble. It’s always a pleasure going to see Allison for updates — she is always welcoming, and her tax knowledge is very extensive.

    Having AFor as my accountants has taken a big burden off my shoulders, for which I am truly grateful.

    I would recommend AFor to friends and family, and I have already done so this year. I wish the firm the very best for the future.“

    Nick Wood, Pro Golfer

  • “Allison is incredibly helpful. She has offered advice for me as a new business and gone above and beyond to schedule phone calls out of hours to work around my schedule.

    Allison and AFor have been great with advice and guidance on my tax and bookkeeping and have massively cut down the time it takes me, meaning I can put more time into my business.

    Super friendly team with quick response times and great advice.“

    Abbie Tweed, Petite Studios

  • “I met Allison through a networking event I was invited to. I was a new small business and ready to start working with an accountant.

    Allison and her team have been a godsend for me. Pleasant, helpful, and always on hand to give any specific advice I need — which is always provided in a timely manner and, more importantly, correct.

    I have recommended them to friends for both personal and business accounts.“

    Andrew Walker, Desired Effect Antiques Ltd

  • “Allison and the AFor team are amazing and have been a great asset to my company.

    Allison has been supportive since day one, going the extra mile to assist me with my accounting and payroll.

    As well as being knowledgeable, she is also friendly, reliable, and helpful in more ways than one.“

    Ryan Austin, Big One Marketing Ltd