The 2026–27 tax year marks the biggest shift in small business compliance in a generation.
While tax rates may grab the headlines, the real impact for sole traders and landlords is how HMRC expects information to be reported.

Key changes you should be planning for

1. Making Tax Digital for Income Tax becomes mandatory
From April 2026, qualifying sole traders and landlords must:

• Keep digital records
• Submit quarterly updates
• Use MTD‑compatible software
• Submit an End of Period Statement (EOPS)
• File a Final Declaration

This replaces the traditional annual Self Assessment return for those affected.

2. Cash flow matters more than ever
Quarterly reporting doesn’t mean quarterly tax payments (yet), but:

• HMRC will have an up‑to‑date view of your income
• Tax bills will be more predictable
• Poor record‑keeping will show quickly

3. Penalties are faster and more automated
Late submissions and inaccurate data will be picked up sooner under HMRC’s points‑based penalty system.

✅ Action tip:
If you’re still using spreadsheets or paper records, 2026–27 is the year to change — not later.