Sole-trading farm businesses that earn more than £50,000 per annum have less than a year to plan for the next round of Making Tax Digital (MTD).
Making Tax Digital for Income Tax is set to go live on 6 April 2026, and will affect all sole-traders and landlords with a gross income of more than £50,000.
According to HMRC’s website, eligible taxpayers can sign up to a testing programme now to get ahead of the changes. The website also claims the changes will ‘deliver time saving benefits for taxpayers’.
It states:
“The launch on 6 April 2026 marks a significant and ultimately time-saving change in how these individuals will need to keep digital records and report their income to HM Revenue and Customs (HMRC). “By keeping digital records throughout the year, sole traders and landlords can save hours previously spent gathering information at tax return time – allowing them to spend more time focusing on their business activities and in turn, driving economic growth as part of the government’s Plan for Change.”
Adopting the new system involves getting to grips with MTD-compatible software and submitting summaries of income and expenses to HMRC on a quarterly basis.
Those with incomes above £30,000 will also be required to use MTD for Income Tax from April 2027, and from April 2028, the threshold will decrease to £20,000.
Jacqui Foster, farms and estates manager at Whitley Stimpson, said farmers daunted by the changes can seek expert advice. She said:
“Whereas MTD is compulsory, it is a relatively straightforward process to adopt. “Anyone who is at all concerned should speak to their accountant who will take them through the changes and explain what they need to do. “Our advice is don’t leave it to the last minute. Whereas it might feel like a big change, there is lots of support available, so don’t be afraid to make the change.”
To speak to Jacqui about MTD, call (01295) 270200 or email jacquif@whitleystimpson.co.uk