From April 2026, sole traders, landlords, and CIS subcontractors like you will no longer be able to rely on paper records or once-a-year tax returns. Instead, HMRC will require quarterly digital submissions using approved software, creating new costs and admin for you and millions of people — from those managing rental income, to subcontractors on building sites, to small business owners.

HMRC estimates 4.2 million taxpayers will be affected. And research shows 64.3% of businesses surveyed believe MTD will increase their admin burden. Are you that firm?

Talk to us. Get in touch with us now for expert financial advice — just click the link.

Here’s a simple way to Save Money

You don’t need to wait for HMRC’s hammer to drop. The good news is that you can prepare now and avoid last-minute stress. By switching to digital systems early, you’ll save time, reduce very costly mistakes, and spread out the learning curve before the rules become mandatory.

Take Sarah for example, a sole trader earning £55,000 a year. She used to keep physical receipts and hand them to her accountant every January. Unfortunately under MTD, this won’t work anymore and this is a problem she must find a way to fix. Instead, she can:

By 2026, Sarah will be ready—and avoid both panic and higher costs. Are you ready?

👉 For clear, practical financial guidance, get in touch with us through this link

👉 For GetCoconut, click this link

References

[1]HMRC. (2025a). Making Tax Digital for Income Tax Self Assessment for sole traders and landlords. Retrieved from
https://www.gov.uk/government/publications/extension-of-making-tax-digital-for-income-tax-self-assessment-to-sole-traders-and-landlords/making-tax-digital-for-income-tax-self-assessment-for-sole-traders-and-landlords
[2]HMRC. (2021). Extension of Making Tax Digital for Income Tax Self Assessment to businesses and landlords. Retrieved from
https://www.gov.uk/government/publications/extension-of-making-tax-digital-for-income-tax-self-assessment-to-businesses-and-landlords/extension-of-making-tax-digital-for-income-tax-self-assessment-to-businesses-and-landlords
[3]ABAB. (2024). Administrative Burdens Advisory Board annual report 2024: Better tax for better business. Retrieved from
https://www.gov.uk/government/publications/administrative-burdens-advisory-board-annual-report-2024/administrative-burdens-advisory-board-abab-2024-annual-report-better-tax-for-better-business--2