If you are a Sole Trader or Landlord in Bromley, Making Tax Digital for Income Tax is now an important part of your tax obligations.
From 6 April 2026, qualifying sole traders and landlords with annual income from self-employment and property of more than £50,000 are required to use Making Tax Digital for Income Tax (MTD IT).
HMRC has also started automatically signing up some taxpayers who should already be using Making Tax Digital but have not yet registered themselves.
For self-employed individuals and landlords across Bromley and the surrounding areas, now is the time to make sure your accounting records, bookkeeping system and software are ready.
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax is HMRC’s new system for reporting self-employment and property income.
Instead of relying solely on an annual Self Assessment process, taxpayers within the MTD rules must maintain digital accounting records and use compatible software to provide information to HMRC throughout the tax year.
Under Making Tax Digital, affected taxpayers will generally need to:
- Keep digital records of business or property income and expenses.
- Use Making Tax Digital-compatible accounting software.
- Submit quarterly updates to HMRC.
- Complete their year-end tax reporting through compatible software.
The quarterly updates are summaries of income and expenses recorded within your accounting software rather than separate tax returns.
Who Needs to Use Making Tax Digital in 2026?
Making Tax Digital for Income Tax is being introduced in stages.
The current timetable is:
From 6 April 2026:
Sole traders and landlords with qualifying income of more than £50,000.
From 6 April 2027:
The threshold reduces to qualifying income of more than £30,000.
From 6 April 2028:
The threshold reduces again to qualifying income of more than £20,000.
This means that even if you are not currently required to join MTD, you may fall within the rules over the next two tax years.
What Counts as Qualifying Income?
Qualifying income broadly means your gross income from self-employment and property before expenses are deducted.
For example, if you are both self-employed and a landlord, your relevant income sources are considered together when determining whether you exceed the MTD threshold.
HMRC is Now Signing Some Taxpayers Up Automatically
A significant development in September 2026 is that HMRC has started signing up taxpayers who it believes should already be using Making Tax Digital for the 2026/27 tax year but have not registered themselves.
HMRC is using information already held on its systems to determine who may need to join.
If HMRC signs you up, it is important to check that the information held about your self-employment and property income is correct.
Changes to your circumstances since your previous tax return may not necessarily be reflected in HMRC’s existing records.
What Does This Mean for Sole Traders?
If you run a business as a sole trader, Making Tax Digital could significantly change how you manage your bookkeeping.
Leaving bookkeeping until the end of the tax year may no longer be practical.
Businesses within MTD need an accounting system capable of maintaining appropriate digital records and providing the information required for quarterly submissions.
Moving to cloud accounting or MTD-compatible bookkeeping software can also provide other benefits, including more up-to-date information about business performance, cash flow, expenses and anticipated tax liabilities.
What Does Making Tax Digital Mean for Landlords?
MTD is equally important for landlords.
If you receive rental income and your qualifying income exceeds the relevant threshold, you may need to maintain your property accounting records digitally and provide quarterly information to HMRC.
This can be particularly relevant for landlords with several properties or those who also have income from self-employment.
Getting your records organised early can make the transition significantly easier.
What Should You Do Now?
If you are self-employed or receive rental income, consider reviewing:
- Your total qualifying income.
- Whether you already fall within the £50,000 MTD threshold.
- Whether you are likely to exceed the £30,000 threshold.
- Whether your current bookkeeping software is MTD compatible.
- Whether your accounting records are sufficiently up to date for quarterly reporting.
Even where MTD does not yet apply, preparing early can avoid an unnecessary rush when your mandatory start date arrives.
Need Help With Making Tax Digital?
Making Tax Digital represents a major change to the way many sole traders and landlords interact with HMRC.
If you are looking for an accountant in Bromley to help with Making Tax Digital, Bookkeeping, Self Assessment or landlord accounts, professional support can help you establish the right processes before deadlines become a problem.
We can help you understand whether Making Tax Digital applies to you, review your existing records, choose an appropriate accounting system and manage your ongoing tax and reporting obligations.
Need help with Making Tax Digital in Bromley? Contact us to discuss your circumstances and get your accounting records MTD-ready.
This article is intended as general information and should not be treated as personalised tax advice. Tax rules and individual circumstances can vary.