If you are a sole trader in Slough, the biggest 2026 change is Making Tax Digital for Income Tax. Since 6 April 2026, sole traders and landlords with qualifying income above £50,000 have had to keep digital records, send quarterly updates and submit their annual tax return through compatible software. The threshold falls to more than £30,000 from April 2027 and more than £20,000 from April 2028. Other developments include a higher simplified mileage rate and consultations on changing how some taxes are paid.
Making Tax Digital is the headline change
The first phase applies where your combined gross income from self-employment and property exceeded £50,000 in 2024/25. Qualifying income is measured before expenses, and income from all relevant sole-trader businesses and property sources is added together.
MTD does not replace the annual return with 4 quarterly tax returns. You must maintain digital records and use compatible software to send summaries of income and expenses during the year. You then add other reportable income and gains and submit your tax return through the software. The GOV.UK eligibility tool can confirm when the rules apply to you.
| Start date | Income year checked | Qualifying income |
|---|---|---|
| 6 April 2026 | 2024/25 | More than £50,000 |
| 6 April 2027 | 2025/26 | More than £30,000 |
| 6 April 2028 | 2026/27 | More than £20,000 |
The first deadline is already approaching
For businesses that joined on 6 April 2026, the first quarterly update covers 6 April to 5 July 2026 and is due by 7 August 2026. The remaining 2026/27 deadlines are 7 November 2026, 7 February 2027 and 7 May 2027.
You must still submit your 2025/26 Self Assessment for sole traders return in the usual way by 31 January 2027. Your first annual return submitted through MTD software, covering 2026/27, is due by 31 January 2028. Our guide to the first MTD deadline for Slough sole traders explains the transition.
HMRC will not apply penalty points for late quarterly updates during 2026/27 to people required to join from April 2026. However, digital record-keeping and reporting remain mandatory. Penalties can still apply to a late annual return or tax paid after its deadline.
Need Help With Your Accounts Or Tax?
Whether you need support with self assessment, VAT returns, payroll, bookkeeping, CIS, company accounts or corporation tax, Asmat & Co Accountants can provide clear, practical advice for your business or personal finances.
Getting the practical side right
You need software that can maintain records, submit quarterly updates and complete the annual return. Our MTD software shortlist compares practical options, while our QuickBooks accountants can configure a suitable system. Our bookkeeping services can also keep transactions reconciled throughout the year.
The other changes worth noting
The simplified mileage rate for self-employed people using cars or goods vehicles increased retrospectively from 45p to 55p for the first 10,000 qualifying business miles in 2026/27. It remains 25p for each mile above 10,000. You cannot use this method for a vehicle where you have already claimed capital allowances or deducted its actual running costs.
The government is consulting on more timely Income Tax payments, including possible changes to payments on account. These are proposals, so existing Self Assessment payment deadlines remain in place. A separate consultation is considering whether VAT and PAYE liabilities should generally be paid by Direct Debit. Current payment methods continue to apply to VAT returns.
Frequently asked questions
Do I have to pay tax quarterly under MTD?
No. Quarterly updates report income and expenses; they are not quarterly tax bills.
What if my income is below £50,000?
You may be outside the first phase, but the later thresholds could bring you into MTD from April 2027 or April 2028.
Can my accountant handle MTD for me?
Yes. An authorised agent can help with registration, records, quarterly updates and the annual return.
Does MTD change how much tax I pay?
No. It changes record-keeping and reporting, not the rules used to calculate taxable profit.
Get MTD-ready before your next deadline
As sole trader accounting specialists and accountants in Slough, Asmat Accountants can help with software, bookkeeping, quarterly updates and annual returns. Support is also available through our accountants in Reading, while our payroll services can be coordinated with your wider accounting work. Book a call to put a reliable digital process in place.
Need Help With Your Accounts Or Tax?
Whether you need support with self assessment, VAT returns, payroll, bookkeeping, CIS, company accounts or corporation tax, Asmat & Co Accountants can provide clear, practical advice for your business or personal finances.
