Latest blog from the hansen company

Making Tax Digital (MTD) for Income Tax is officially underway! If you’re a sole trader or a landlord affected by the new rules, it’s time to get your digital records in order. The first group joined the new system in April 2026, with more people coming into scope from April 2027. So, whether you’re already getting to grips with MTD or preparing for next year, here are a few tips to make life easier.

Doing it yourself? Here are our top tips!

1. Find the right software

You’ll need software that’s compatible with MTD for Income Tax. If you’re not sure whether your current software is up to the job, check before you get started or give us a ring and we can check for you!

2. Keep on top of your bookkeeping

Nobody enjoys a mountain of paperwork! Record your income and expenses regularly rather than leaving everything until the last minute.

3. Keep those receipts!

Digital records are important, but so is keeping the evidence behind your figures. Make sure your invoices, receipts and bank records are easy to find.

4. Get your deadlines in the diary

Quarterly updates mean more regular reporting throughout the year. Set reminders so you have plenty of time to get everything ready. We recommend giving yourself at least two weeks to prepare, complete, and submit your returns.

We look after your accounts? Here's how you can help!

If The Hansen Company is handling your MTD reporting, we’ll help you navigate the process. There are still a few things you can do to keep everything running smoothly:

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• ‍Send us your information on time. Please send your records to us by the middle of the month, i.e. 15th of June, October, January, and April.‍
• Give us the full picture. Include all relevant income and expenses, even if they come from different bank accounts or payment platforms.‍
• Help us with our questions. If we need to clarify a transaction, getting back to us promptly helps avoid delays.‍
• Tell us when things change. New rental property? Big equipment purchase? Change in your business? Let us know! No need to wait until it is time to complete your returns. Pop us an email or give us a call. We'd love to catch up!

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Don't panic! We're here to help!

HMRC has introduced a temporary easing of penalties for late quarterly updates during the 2026/27 tax year. However, the reporting requirements still apply, so it's worth getting into good habits now. MTD might feel like another thing on your to-do list, but with the right preparation, it doesn't have to be a headache.

If you're unsure whether MTD for Income Tax affects you, need help choosing software or want to discuss how we can help with your quarterly reporting, get in touch with us. We'll help you get sorted!

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Please call us on 0141 644 5486 or email busby@thehansencompany.co.uk