Published: 12/02/2026 By Hannah Duncan
If you’re a sole trader or landlord, the next phase of Making Tax Digital (MTD) is especially relevant to you. From April 2026, MTD for Income Tax Self Assessment will introduce quarterly digital reporting and new record-keeping requirements for many individuals who currently submit an annual tax return.While MTD is designed to modernise the tax system, it also brings changes to how income and expenses are recorded and reported. For sole traders and landlords, preparing early and avoiding common mistakes can make the transition far smoother helping to reduce admin, avoid errors, and stay compliant with confidence.
Mistake 1: Leaving preparation too late
For many sole traders and landlords, tax is often dealt with annually. Under MTD, this mindset can cause problems. Waiting until deadlines are close can lead to rushed software choices, limited time for testing systems, and increased risk of errors. Early preparation gives you time to review how you record income and expenses, and to make sure your systems are ready for quarterly reporting.
Mistake 2: Choosing the wrong software
Not all MTD-compatible software is right for every sole trader or landlord. A system that doesn’t match how you track income, property expenses, or multiple income streams can create extra work. It’s important to choose software that supports your specific needs whether that’s managing rental income, tracking business expenses, or handling multiple properties or activities.
Mistake 3: Poor or inconsistent digital records
MTD relies on accurate, complete digital records. For sole traders and landlords, this means keeping on top of invoices, receipts, and expense categories throughout the year. Missing transactions, inconsistent coding, or poor reconciliations can quickly lead to incorrect submissions and unnecessary follow-up work. Keeping records up to date makes quarterly updates smoother and far less stressful.
Mistake 4: Treating MTD as a tick-box exercise
It’s easy to see MTD as just another compliance task particularly if you’re managing your business or property portfolio alongside other commitments. However, regular digital reporting can provide useful insight into profitability, cashflow, and trends. For landlords, this may highlight property performance. For sole traders, it can help track business health. Used well, MTD can support better decision-making not just satisfy HMRC.
A smarter way to manage MTD
For sole traders and landlords, a more proactive approach to MTD typically includes:
- Setting up systems early
- Choosing software that suits your income and expense structure
- Keeping digital records up to date
- Getting professional support where needed
Looking ahead to 2026 and beyond
With the next phase of MTD for Income Tax Self Assessment starting in April 2026, and expanding further in April 2027, now is the ideal time for sole traders and landlords to review whether their current systems and processes are ready. Taking action early can help avoid last-minute pressure and ensure you are well prepared for the changes ahead.
How TBA can help
At TBA, we support sole traders and landlords with MTD setup, software selection, ongoing compliance, and making better use of digital financial data. Our goal is to help reduce admin, improve accuracy, and give you clearer insight so you can focus on running your business or managing your properties with confidence.
Get in touch today to see how we can get you MTD ready.