Episode overview
From early 2026 smaller businesses and landlords will be required to report trading figures to HMRC electronically on a quarterly basis. Join the Lovewell Blake experts to understand who will be effected, what changes will be required and how to prepare. James talks to Ryan Lincoln and Mary Schofield to get the inside story from both the accounting and tax perspective.
Episode summary
In this episode, James Shipp is joined by Ryan Lincoln and Mary Schofield to discuss the introduction of HMRC's Making Tax Digital (MTD) for Income Tax regime and what it means for smaller businesses and landlords. The conversation explores the significant changes coming into effect from early 2026, including the requirement for affected individuals to maintain digital records and submit trading information to HMRC on a quarterly basis. The hosts explain who is likely to be impacted by the new rules and why it is important to begin preparing well before the deadlines arrive.
Drawing on both accounting and tax expertise, Ryan and Mary outline the practical implications of the new reporting requirements, the systems and processes businesses may need to adopt, and the potential challenges of transitioning from traditional record-keeping methods. The episode provides valuable guidance for business owners and landlords looking to stay compliant, reduce administrative stress and make the shift to digital tax reporting as smoothly as possible. By understanding the changes early and putting the right processes in place, taxpayers can be better prepared for the future of digital tax administration.
Key takeaways
HMRC's Making Tax Digital for Income Tax regime will require certain businesses and landlords to submit income and expense information electronically.
Quarterly reporting will become a key part of the tax process for those affected by the new rules.
Smaller businesses and landlords should identify early whether they fall within the scope of the new requirements.
Digital record-keeping will be essential, meaning many taxpayers may need to review or upgrade their accounting systems.
Preparing in advance can help avoid disruption and reduce the risk of non-compliance when the rules take effect.
The move to digital reporting is intended to improve the accuracy and efficiency of tax administration.
Businesses should review their bookkeeping processes to ensure they can meet quarterly reporting obligations.
Professional advice can help taxpayers understand how the changes apply to their individual circumstances.
Transitioning to digital systems may provide wider benefits, including improved financial visibility and better access to business information.
Chapters
00:00 - Introduction and reflections on MTD for VAT
01:50 - Why move to real time cloud accounting?
02:46 - What is Making Tax Digital for income tax?
04:02 - Why HMRC is Introducing MTD (future outlook)
05:20 - Who is affected? (sole traders and landlords)
05:46 - Income thresholds and key deadlines (2026 and 2027)
07:23 - Practical approaches: spreadsheets vs. software
09:10 - Why you shouldn't wait until the last minute
09:49 - How Lovewell Blake can help and next steps
Guest bio
Ryan Lincoln is a Partner at Lovewell Blake, based in the firm's Halesworth Office. A Chartered Accountant with extensive experience advising businesses and individuals, Ryan specialises in providing accountancy and taxation advice to companies, owner-managed businesses and entrepreneurs. He has particular expertise in the agricultural sector, working closely with farming businesses, family enterprises and start-ups to help them navigate financial, tax and succession planning challenges.
Mary Schofield is a Tax Partner at Lovewell Blake, based in the firm's Norwich Office. With more than 20 years of experience as a tax professional, Mary advises entrepreneurial businesses, company owners and private individuals on a wide range of tax matters. Her expertise spans corporate taxation, international tax, business finance and strategic tax planning, helping clients manage complex tax issues and support long-term growth.