Watch our short video where Chelsea Turner explains what you need to know

Ready to get started?

Contact Grenfell James at MTDitsa@gjaassociates.co.uk and copy us at MTD@Hudsoncontract.co.uk

Here’s what Chelsea covered in the video above:

Overview

You may have seen the news that HMRC's Making Tax Digital for Income Tax starts in April 2026. If you earned more than £50,000 as a sole trader or landlord in 2024-25, you need to comply – but don’t panic, we're here to make it simple.

What you need to do:

You’ll need to use compatible software to keep digital records of your earnings and expenses and send quarterly updates to HMRC.
 
These are not tax returns – just simple summaries to keep HMRC updated.

To help you comply easily, Hudson has partnered with specialist accountancy firm Grenfell James to recommend a user-friendly tool that costs as little as £10 per month plus VAT. They have a range of packages here. 

You’ll be pleased to know:

• You don’t have to change your accountant
• If you’re used to doing your own tax returns, you still can
• If your partner or bookkeeper usually helps you, that’s fine too.

Remember: the way you report tax is changing, but the way you run your business doesn’t have to.

A couple of things to watch out for:

• Don’t overpay – there are some expensive software packages out there you simply don’t need.
• Think carefully about opening a limited company to avoid the new rules – that will be more expensive and needlessly complicated.