A Guide for Sole Traders and Landlords in Darlington and the North East
Making Tax Digital for Income Tax (MTD ITSA) is one of the biggest changes to the UK Self Assessment system in recent years. From April 2026, many sole traders and landlords across Darlington and the wider North East will need to keep digital records and submit more frequent updates to HMRC.
This guide explains who will be affected, when the rules start, and what steps you can take now to prepare.
What is Making Tax Digital for Income Tax?
Making Tax Digital is HMRC’s move towards a fully digital tax system. Instead of submitting just one tax return each year, individuals within MTD will:
- Keep digital accounting records using compatible software
- Send quarterly updates of income and expenses to HMRC
- Complete a final end-of-year declaration
The aim is to reduce errors, improve accuracy and give taxpayers a clearer view of their tax position during the year.
Who will need to follow MTD?
MTD applies to individuals with self-employment income or UK property income once their total gross income exceeds certain thresholds.
The current timetable is:
- From 6 April 2026 – income over £50,000
- From 6 April 2027 – income over £30,000
- From 6 April 2028 – income over £20,000
Income is measured before expenses are deducted, so turnover rather than profit determines whether you fall within the rules.
What will change for sole traders and landlords?
If MTD applies to you, your reporting process will change in three main ways.
Digital record-keeping
You will need to maintain digital financial records using compatible software. Many businesses in Darlington and across County Durham are choosing cloud platforms such as Xero, although spreadsheets can still be used alongside bridging software.
Quarterly updates to HMRC
Instead of one annual submission, you will send summary totals of income and expenses every quarter.
End-of-year final declaration
A final submission is still required to confirm your taxable profit and apply accounting adjustments.
Quarterly deadlines for the 2026/27 tax year
Most taxpayers will follow standard tax-year quarters:
| Quarter Ending | Filing Deadline |
|---|---|
| 5 July 2026 | 7 August 2026 |
| 5 October 2026 | 7 November 2026 |
| 5 January 2027 | 7 February 2027 |
| 5 April 2027 | 7 May 2027 |
Quarterly updates contain summary figures only, with final tax adjustments completed after the year end.
Will Self Assessment disappear?
No. While MTD introduces more frequent reporting, there will still be an end-of-year process similar to a traditional tax return where your final tax position is confirmed.
How to prepare for Making Tax Digital
Although April 2026 may seem some way off, many accountants across the North East are encouraging clients to prepare early. Practical steps include:
- Reviewing how you currently keep records
- Moving to compatible accounting software if needed
- Ensuring business and property income is recorded digitally
Early planning helps avoid disruption when MTD becomes mandatory.
Getting support with MTD in Darlington
Making Tax Digital represents a significant shift in how sole traders and landlords interact with HMRC. If you are based in Darlington, County Durham or the surrounding North East area and are unsure how the changes will affect you, get in touch and we can help you choose the right systems and stay compliant from day one.
How can we help you with this?
We offer a range of services to help you meet your MTD requirements
● Full bookkeeping, quarterly reporting and year end accounts and personal tax return
● Quarterly reporting and year end accounts and personal tax return
● Year end accounts and personal tax return
Please get in touch and we can have a chat and provide you with a personalised quote.
