Making Tax Digital for Income Tax has changed how many landlords and sole traders must keep their records and report their income to HMRC.

If you are unsure whether the rules apply to you, worried about using Xero or simply want someone to manage the process, Wise Virtual Services can help.

From setting up Xero and organising your records to ongoing bookkeeping and quarterly submissions, I can make Making Tax Digital straightforward and manageable.

Making Tax Digital, often shortened to MTD, requires eligible landlords and sole traders to:

• Keep digital records of their income and expenses.
• Use compatible software, such as Xero.
• Submit summaries of their income and expenses to HMRC every quarter.
• Submit their annual tax return using compatible software.

The quarterly updates are not four additional tax returns, and they do not mean you will automatically pay Income Tax every quarter.

MTD applies to sole traders and landlords registered for Self Assessment whose qualifying income is:

• More than £50,000—from 6 April 2026.
• More than £30,000—from 6 April 2027.
• More than £20,000—from 6 April 2028.

Qualifying income is your total income from self-employment and property before expenses are deducted. If you receive both, the amounts are added together.

Employment income, pensions and dividends do not normally count towards the threshold.

You can check the latest requirements using HMRC’s Making Tax Digital guidance.

If you use the standard tax-year periods, your updates must be submitted by:

• 7 August—covering 6 April to 5 July.
• 7 November—covering 6 April to 5 October.
• 7 February—covering 6 April to 5 January.
• 7 May—covering the full tax year from 6 April to 5 April.

Your bookkeeping must be kept up to date so the correct income and expense totals can be submitted by each deadline.

If you are new to Xero, I can set everything up correctly from the beginning, including:

• Creating or reviewing your Xero account.
• Setting up suitable income and expense categories.
• Connecting your bank accounts securely.
• Adding opening balances.
• Organising digital receipts and documents.
• Preparing your account for MTD reporting.

If your records are currently on paper, in spreadsheets, mixed across several accounts or simply behind, please do not panic.

I can:

• Bring your records up to date.
• Import and categorise existing transactions.
• Separate business or property activity from personal spending.
• Reconcile your bank accounts.
• Correct incorrectly recorded transactions.
• Identify missing information.
• Prepare everything for your next deadline.

I can manage your bookkeeping throughout the year so it does not build up before each deadline.

This can include:

• Recording income and expenses.
• Reconciling bank accounts.
• Processing invoices and receipts.
• Contacting you about unclear transactions.
• Keeping Xero organised and up to date.
• Preparing and submitting quarterly updates.
• Providing clear reports about your income, costs and cash flow.

You do not need to leave your existing accountant. With your permission, I can work alongside them to ensure your Xero records are accurate, avoid duplicated work and provide everything needed for your annual tax return.

Get in touch today to discuss your current setup and receive an approximate quotation.