Zen Insights

Practical tips and expert advice to help your business thrive.

Making Tax Digital: What It Means for Sole Traders and Landlords (2026)

From April 2026, HMRC is introducing major changes under Making Tax Digital (MTD). If you earn £50,000 or more from self-employment or rental income, you’ll need to keep digital records and send quarterly updates instead of doing one annual Self Assessment return.

It might sound overwhelming, but the good news is that going digital is simpler than you think — and the right tools make the whole process much smoother.

 

Who Is Affected?

You’ll fall under the new MTD rules if you are:

  • A sole trader earning more than £50,000 per year from self-employment

  • A landlord with rental income above the threshold

  • Anyone currently completing a Self Assessment for business or property income

 

What Counts as Digital Records?

Digital records simply mean keeping your financial information in software, not on paper.

This could include:

  • Accounting software like QuickBooks Online

  • A well-designed spreadsheet that can submit data to HMRC

  • Tools like Dext that capture receipts and send them to your accounting system

The goal isn’t to change how you run your business — just how you keep and report your records.

 

Why It’s Not as Scary as It Sounds

Switching to digital actually comes with big benefits:

  • You don’t need to transform your systems overnight — you can transition gradually

  • Apps automatically store, categorise, and prepare your data

  • You’ll spend less time on paperwork and more time running your business or managing your property

 

A Quick Example

Snap a receipt in Dext, and the app will:

  1. Read the details automatically

  2. Send it straight to your QuickBooks Online account

  3. Store it safely for your tax records

No more lost invoices, messy spreadsheets, or shoeboxes full of receipts — everything stays organised in one place.

Ready to Get Ahead of the 2026 Changes?

We can help you get set up with the right digital tools and make sure everything runs smoothly before MTD becomes mandatory.

 

📅 Book your free consultation today and start 2026 ahead of the curve.

 

Share:

More Posts

MTD for Landlords: What You Need to Know Before the Rules Change

Landlords earning over £50,000 in rental income will soon need to follow Making Tax Digital (MTD) rules. This means keeping all income and expenses in compatible software — no more spreadsheets or paper files.
In this guide, we break down what counts as a digital record, the simplest tools to use, and the habits that make staying compliant easy for busy landlords.

Client Success Story: Stress-Free Year-End Preparation

Many small business owners approach year-end feeling overwhelmed. Here’s how a typical client went from stressed and behind to organised, confident, and ready for the new financial year — with the right support and structure.

What Counts as Digital Records for MTD?

Not sure what counts as a digital record under Making Tax Digital? This guide breaks down exactly what HMRC expects and shows simple, practical ways to keep your records compliant.

5 Things You Can Do Now to Prepare for MTD

Preparing for Making Tax Digital doesn’t need to be overwhelming. With a few simple steps, you can get ahead now and make next year far easier. Here are five practical actions you can take today to get ready — from choosing the right tools to building small weekly habits that keep your records stress-free.

Subscribe

Stay up to date with practical tips, insights, and news from Zen Accounting. Subscribe to get updates straight to your inbox.