What sole traders and landlords need to know about digital records, quarterly updates and HMRC compatible software.
Why this matters
Quarterly digital reporting changes the way income and expenses are captured and submitted. Businesses that wait until the deadline approaches will find the transition harder than it needs to be.
What sole traders and landlords should consider
- Whether current record keeping meets digital requirements
- Choice of HMRC compatible software, including bridging options where needed
- How property income, joint ownership and multiple trades will be reported
- How quarterly updates will fit alongside the year end process
Common issues or warning signs
- Records still kept on paper or in spreadsheets that cannot link to HMRC
- No clear allocation of expenses between business and personal
- Property portfolios where ownership and income flows are not documented
- No agreed routine for quarterly information from clients to accountant
Practical steps
- Move to compliant software in advance of the start date
- Set up a regular monthly bookkeeping rhythm rather than waiting on the quarter
- Agree responsibilities between client and adviser for each quarterly update
- Review tax planning and payments on account in light of more frequent reporting
How Bracknwell Partners can help
We help sole traders, landlords and owner managed businesses transition to Making Tax Digital with the right software, processes and adviser support.