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Dec 202505

Are you ready for Making Tax Digital in April 2026?

budget, general business, self assessment, tax planning
Making Tax Digital for Income Tax is one of the most significant changes to the UK tax system in decades and it becomes mandatory from April 2026 for anyone earning over £50,000 from self-employment and property income. 

This new system will replace the traditional once a year Self-Assessment with a fully digital approach to record keeping and reporting. Instead of a single annual return, affected taxpayers will need to submit quarterly updates and in some cases two sets of quarterly updates if they have both business and property income, along with a final end of year submission. 

With HMRC tightening compliance checks, increasing documentation requirements, and placing much more emphasis on accurate digital records, now is the time to understand what’s changing and prepare your systems before the deadlines arrive.

What does this mean for sole traders and landlords


From 6 April 2026, MTD for Income Tax becomes mandatory for individuals whose gross income exceeds £50,000 (in the 2024/25 tax year).

If your total gross income passes £30,000 in 2025/26, expect the requirement to apply from April 2027 and a further drop to £20,000 is stated for April 2028, meaning most people will eventually fall under Making Tax Digital.

You must keep digital records of income and expenses. For each business, whether self-employment or rental, you will need to send a quarterly update. At the end of the tax year, a final, full digital tax return must be submitted taking into account all income sources.

Here’s how that works depending on your situation:
  • If you’re a sole trader only: 4 quarterly updates + 1 final return = 5 submissions per year.
  • If you have property only: 4 quarterly property income updates + 1 final return = 5 submissions per year.
  • If you both trade AND rent out property: 2 separate sets of quarterly updates (one for business income, one for property) + the final combined return = 9 submissions per year.

Why are HMRC doing this?


The push behind MTD is for greater data, greater transparency, and fewer surprises for both taxpayers and HM Revenue & Customs.

Many sole traders and landlords are still unprepared. One recent survey showed that a significant number remain unaware of the upcoming changes, still rely on spreadsheets or paper, and underestimate the time required for digital record keeping.

HMRC will now expect full digital records, including income and expenses tracked through compatible software, casual bookkeeping (bank statements and spreadsheets) won’t be enough.

How can we help? We are fully MTD ready


As your accountant of choice, we’ve already taken steps to implement MTD compliant processes and software. 
  • We’ll set up software to manage your income and expenses digitally.
  • Keep separate records for self-employment and property.
  • Submit quarterly updates on your behalf.
  • Handle the final year end return and adjustments, including other income types like PAYE, dividends, interest and capital gains etc.

It is a lot, but it also means no more scrambling at year end time and no surprise HMRC investigations and peace of mind that everything is done properly first time.

Act now – April 2026 isn’t far away


It may seem like plenty of time but once you think about the first quarter (April to June 2026), the first deadline (07 August 2026) and all the bookkeeping, it comes around fast. Getting organised now helps you avoid last minute panic and ensures you’re fully compliant from day one.  

For those of you having to start this process in the first batch April 2026 to June 2026. We have already been in touch to let you know you are in the list. We are still very much around for you, if you need to ask any questions on what has been the biggest change sole traders have ever faced.

MTD for Income Tax will bring extra work and more regular filings. But the goal is clearer financial records, fewer tax surprises, and smoother compliance with HMRC.

With the right software, the right support and the right accountant, you can turn this change from a burden into an opportunity to get your finances in order once and for all.

Let’s get ready, April 2026 will be here before you know it.
Apr 202510

Making Tax Digital for Income Tax

budget

Hello and welcome to April — the start of a brand-new financial year! As always, this time of year brings fresh updates from the Government and one of the most notable changes on the horizon is HMRC’s ‘Making Tax Digital’ for Income Tax Self-Assessment which is coming into affect from April 2026.  This is directly affecting small businesses trading through self assessment, and property landlords.


What’s Changing?


If you’re used to submitting a Self-Assessment tax return once a year, things are about to change. HMRC is moving towards quarterly reporting, much like what VAT-registered businesses already do. This means instead of sending in your figures once a year, you’ll now be expected to submit updates every three months, using Accounting software compatible with HMRC, the spreadsheet will become a thing of the past.

 

Who Does This Affect?

 

This will roll out in phases:

  • From April 2026: If your total self-employed or property turnover is over £50,000, you’ll be required to comply.
  • From April 2027: The threshold lowers to £30,000.

 

This applies to landlords as well as sole traders, so even if you're just renting out property and not running a business, this could still apply to you.

 

What Should You Do?

 

If you're likely to be affected, don’t panic. We’ll be in touch with you individually to discuss the best approach and make sure you’re set up well in advance.

 

It’s worth noting that HMRC has already changed the start date a few times, so we are still in the early days of implementation. Information is a little light at the moment from HMRC side of things, but we’ll keep you updated as soon as we know more.


Here to Help


We know this might feel like a big shift, and it’s perfectly normal to feel unsure about how it will all work. If this news has left you with questions or concerns, please call or message us — we're here to help guide you through it all.

 

Let’s make this new tax year a smooth one!

Mar 202518

Maximise the Benefits of Filing Your Tax Return Early

budget, business plan

Filing your tax return as early as possible comes with several advantages. It removes the stress of last-minute submissions, allowing you to focus entirely on running your business. The self-assessment deadline of 31st January remains unchanged every year, yet HMRC reported that 2.6 million people had not filed their tax returns just two days before the deadline last year.


Missing the deadline results in an automatic £100 fine, with additional penalties for further delays. If your return is more than three months late, daily fines of £10 start accumulating—leading to significant penalties you’ll want to avoid.


You can submit your tax return as soon as April 6th, and filing early comes with a major advantage: you don’t have to pay your tax bill immediately. The payment deadline remains in January, giving you plenty of time to budget for what you owe. Plus, if you’re due a tax refund, filing early ensures you receive it much sooner—unlike those who file in January, when HMRC experiences delays due to high demand.


With a little organisation, you can get your paperwork sorted and your tax return submitted well in advance—leaving you free to enjoy the festive season stress-free. Filing correctly is crucial, as you don’t want to risk overpaying or underpaying your taxes. Seeking professional advice can help ensure accuracy and peace of mind.


Contact us on www.crossaccountingservice.co.uk if you have any concerns regarding your tax return as we are always here to help.

Nov 202116

Property and Holiday Let

self assessment

During the pandemic, we have seen an increase in holiday lets. With the restrictions to go abroad, a lot of people have been having a ‘Staycation’ exploring the wonderful options we have in the UK. 


If you have just started out renting homes or holiday lets, there are a lot of rules for these. HMRC are very strict when it comes to rentals. Replacing items need to be based on a like for like, is the property being improved, all these things need to be taken into consideration 


With self-assessments, we are seeing a lot of husband and wife ownership of property currently that don’t realise that both parties need to complete a self-assessment. If rent is being received or if a property has been sold it all has to be declared regardless of your other income.  

 

If both parties are named on the land registry, you both need to complete a self-assessment return. Unless you have seen a solicitor to change your set up with land registry, any property with joint names is classed as 50:50 ownership. Even if one person has the most interest in the property, all named people on the land registry will have to send a return to HMRC.

 

It is important you read up the rules on taking income from property, whether it is long term rental or holiday let ownership. The number of people we see not declaring income and then having the shock of HMRC writing to them asking for back dated returns is increasing.


HMRC do have the full facility to check land registry registers and transfers of land ownership. Backdating these returns can be costly for the owner and cause a lot of unnecessary stress.


We are here if you need to query anything regarding your property ownership.

Jan 201805

Self-Assessment

self assessment

Happy New Year to you all, we hope you’ve had a lovely Christmas. It’s the New Year but some things remain the same, and that’s the deadline of 31st January for Self-Assessment returns.

 

Self-Assessment is a system HMRC uses to collect tax. For people who are self-employed, with their own business or others who make additional income. 

The dates for Self-Assessment is 

1st April 2016 to the 31st March 2017. With online returns needed to be submitted by

31st January 2018 and paper returns to have already been submitted by 31st October 2017.

 

The best way to keep the tax bill down is to have your paperwork organised. You will need the actual receipts to claim as expenses. Collate your receipts and keep together as HMRC can ask to see evidence at any time. Another great way is to utilise the ISA savings as any interest received is tax-free. You’ll keep your savings on a tax-free basis for as long as you keep the money in your ISA accounts.

 

Higher rate tax payers benefit from additional tax savings when they contribute in to pension schemes and give to charity.

 

An example of a list of records you will need are;

  •          Business and personal bank statements
  •          Records of income
  •          Records of purchases
  •          P60/P45
  •          Rental Income
  •          Interest Income
  •          Child Benefit and Income Support

 

You need many other records to keep, here at Cross Accounting we give our clients a more in detail list of records which we require from them to complete their tax return. This also includes a reminder of approaching deadlines to ensure not to be penalised. HMRC fine £100 for anyone who misses the 31st January deadline.

 

HMRC have revealed a record number of people are filing for self-assessment this year as the numbers are north of eleven million. If you’re a couple of years behind, then do not worry as you’re not alone, we have taken on a number of clients in this situation, and have supported them and brought them up to date. If you’re not sure if you need to submit a self-assessment or you need to complete a return, you can call us on 02920 653 995 or visit our website on www.crossaccountingservice.co.uk to see how we can assist you. 

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