Affinia, the UK’s fastest growing accountancy firm, is urging sole traders, landlords and small business owners to act now on “Making Tax Digital” (MTD), warning that many people who assume the rules do not apply to them could be caught by the forthcoming changes.
From 6 April 2026, Making Tax Digital will apply to individuals with combined gross income over £50,000, including from self-employment and income from property. A further cohort of those with income over £30,000 will be brought in from April 2027.
Affinia says the detail around “combined income” is one of the most widely misunderstood aspects of the legislation.
Rob Thomson, Head of Tax, Affinia said:
“This is not just about sole traders with high turnover. Someone with £40,000 of trading income and £12,000 of rental income will be within scope, even if neither income stream looks particularly large in isolation. Many people simply don’t realise they are affected.”
HMRC estimates suggest that around four million sole traders and landlords will eventually fall within MTD, with more than 854,000 affected from April 2026 alone. Affinia believes a large proportion of these taxpayers have yet to start preparing.
Affinia says particular attention is needed for two groups. Borderline clients, typically those with income between £45,000 and £55,000, who may benefit from early conversations about legitimate and compliant ways to manage their obligations.
In addition, there are property portfolio clients, who may underestimate how multiple rental properties aggregate towards the threshold, especially when combined with self-employed income.
Rob Thomson continued:
“We estimate that these people with borderline income and property may represent a significant proportion of the UK’s self-employed and landlord population.”
Affinia warns that businesses and advisers who wait until the formal start date in April 2026 will already be behind.
Rob Thomson continued:
“The real deadline is not April 2026, it is now. Software selection, data migration, process changes and client onboarding all take time. Firms that leave this too late will face unnecessary stress, higher costs and a poorer experience for clients.”
Affinia has expert tax spokespeople available to comment on Making Tax Digital, including the practical implications for SMEs, landlords and advisers.
