With mandatory MTD requirements approaching, landlords and sole traders should begin preparing well in advance. Taking early action can significantly reduce the risk of errors and financial penalties from HMRC. The following steps will help you transition smoothly to the new digital reporting system. 

Review the MTD rules and official HMRC guidance 

Start familiarising with the MTD scheme , who it applies to, and when you need to join. HMRC provides detailed information and guidance - Agent toolkit - GOV.UK. Understanding the requirements now will help you identify any gaps in your current record-keeping processes. 

Start Transitioning to Digital Record-Keeping 

MTD requires landlords to maintain digital records of all relevant income and expenses. You can prepare by:

• Moving existing spreadsheets or paper records into a digital format; and 
• Ensuring you record transactions in real time 

Early adoption allows you to build confidence and spot any issues before the systems become mandatory. 

Choose Compatible MTD Software

HMRC requires all MTD submissions to be made using MTD-compatible software. Approved software lists are available at - Choose the right software for Making Tax Digital for Income Tax - GOV.UK.

Review Complex Ownership or Property Structures 

Landlords with more complex arrangements may need extra preparation. Understanding how these structures impact digital reporting is essential, and may require specialist advice. 

Sign Up Early to Avoid Last-Minute Issues 

HMRC encourages taxpayers to register ahead of the deadline. Early registration allows you to:

• Test your software
• Work out any set up issues 
• Build familiarity with quarterly submissions
• Ensure you are fully compliant when MTD becomes mandatory 

Seek Professional Advice

Accountants and tax advisers can provide tailored guidance based on your income, property portfolio, and circumstances. Professional support can help you:

• Understand reporting requirements 
• Select the right software
• Avoid compliance pitfalls
• Prepare for quarterly updates and the annual statement 

Working with a qualified adviser is especially useful with multiple properties or complex finances. 

Early Preparation Matters

Preparing ahead of time reduces pressure, minimises the risk of mistakes, and ensures you remain compliant with HMRC's digital reporting rules. With MTD set to significantly change how landlords manage their tax affairs, taking pro-active steps now will make the transition smoother and support better long term financial management.