Important changes coming to tax reporting
What's happening?
HMRC is introducing a new digital tax reporting system called Making Tax Digital for Income Tax (MTD IT). This will change how sole traders and landlords report their income, moving from annual Self Assessment returns to quarterly digital submissions.
Key dates & thresholds
When | Who's Affected |
April 2026 | Sole traders and landlords earning £50,000+ annually |
April 2027 | Threshold reduces to £30,000+ |
April 2028 | Threshold reduces to £20,000+ |
What this means for you
Instead of:
Submitting one annual Self Assessment return
You'll need to:
Keep digital records throughout the year
Submit quarterly updates via approved software
Complete a final annual submission by 31st January
Who's affected:
Sole traders above the income thresholds
Landlords with property income above the thresholds
Anyone with both where combined income meets the threshold
What else you need to know
Registration required: You'll need to register with HMRC for MTD IT, even if you already use other HMRC digital services.
Software is essential: All submissions must be made through HMRC-approved software - paper returns and basic spreadsheets won't be accepted.
No going back: Once you register, you cannot return to the old annual Self Assessment system.
How we're supporting you
At TELUS Agriculture & Consumer Goods, we are currently developing both Farmplan Business Cloud and Farmplan Business Manager to be MTD IT compliant for in-year updates only for self-employed, UK Property and Foreign Property returns.
From one set of data you will have the ability to submit quarterly updates for all 3 submission types, if applicable.
Depending on requirements, you may need to keep records for an individual's income across multiple sets of data or software, and make quarterly update submissions from each.
Note - you will not be able to submit any MTD IT update for a business which has not been setup as a 'Sole Trader'.
Annual/final submissions will not be supported through our software.
Next steps
Check if you're affected by reviewing your annual income
Plan ahead - consider registering early to familiarise yourself with the new process
Seek advice from your accountant or visit the HMRC website for detailed guidance
More information
For detailed guidance, visit the HMRC website or speak with your accountant.
Contact us for updates on our MTD IT compliance development and how our software solutions will support your business needs.