It feels like we’ve been talking about it forever, but the day is fast approaching. After years of delays, pilot schemes, and rumours, Making Tax Digital (MTD) for Income Tax is currently scheduled to roll out this April.

If you are a sole trader in Horsham, a landlord with property in Three Bridges, or a freelancer in Crawley, the way you report your income to HMRC is set to change significantly.

For many local business owners, this represents the biggest shift in tax reporting since Self-Assessment began. And unlike the festive season, it’s not something you can ignore until the last minute.

Here is your plain English guide to what is scheduled to happen on 6th April 2026, who is affected, and how to get ready without the stress.

1. The Big Question: "Does This Affect Me?"

Under current plans, from 6th April 2026, MTD becomes mandatory for a specific "First Wave" of taxpayers. You are included if:

• You are a Sole Trader or Landlord (or both).
• Your total qualifying income was over £50,000 in the 2024/25 tax year.

Crucial Crawley Context:

• "Qualifying Income" means your Gross Income (turnover) before expenses. If you are a builder in Manor Royal with £60k turnover but only £20k profit, you are within the rules.
• "Total" means everything combined. If you have a part-time consultancy earning £30k and a rental property in Gatwick earning £25k, your total is £55k. You are within the rules.

(Note: If you earn between £30,000 and £50,000, your start date is currently expected in April 2027. If you earn under £30k, you are not currently within the mandatory MTD rules, though this may be reviewed by HMRC in the future.)

2. The End of the Traditional Tax Return

The headline change is significant: The traditional once a year Self-Assessment tax return is being replaced for those over the threshold.

Instead of one big panic in January, the new system requires you to submit Quarterly Updates followed by a Final Declaration.

The New 2026/27 Calendar for Crawley Businesses:

• Update 1: 6th April – 5th July (Due by 7th August 2026)
• Update 2: 6th July – 5th October (Due by 7th November 2026)
• Update 3: 6th October – 5th January (Due by 7th February 2027)
• Update 4: 6th January – 5th April (Due by 7th May 2027)
• Final Declaration: Due by 31st January 2028.

This means you need to be on top of your bookkeeping four times a year. The Final Declaration essentially confirms the year’s data and allows you to add any other income or reliefs, acting as the "wrap up" that the old tax return used to be.

3. Why You Need Compatible Software

The "Digital" in MTD means you must keep digital records and submit them using HMRC-compatible software.

Crucially, you can no longer simply type your total figures into the HMRC website at year-end.

Do I have to ditch my spreadsheets? Technically, spreadsheets can still be compliant if you use specialist "bridging software" to digitally link them to HMRC. However, this can be clunky and prone to errors.

The Curve Recommendation: For most small businesses in West Sussex, the most efficient route is to use cloud software like Xero or QuickBooks. These platforms are built for MTD, allowing you to snap photos of receipts, link your bank feed, and submit quarterly updates seamlessly. While spreadsheets are allowed with the right add-ons, dedicated cloud software is generally far safer and easier.

4. The Hidden Benefit for Local Businesses

We know what you’re thinking. "Great, more admin."

But at Curve, we see this as an opportunity. Clients who have already switched to quarterly digital reporting aren't just compliant; they often become more profitable.

Why? Because they aren't driving blind.

• Real-Time Tax Bills: You’ll have a clearer idea of your tax liability every quarter, so you can save for it accurately.
• Cash Flow Clarity: You’ll spot a dip in sales in July, rather than finding out about it the following January.
• Less Stress: Breaking the admin down into four small chunks is far less painful than the traditional "January dread."

5. Your MTD Action Plan for January 2026

We are just months away from the scheduled April launch. If you think you might be over that £50k turnover threshold, here is your urgent checklist:

1. Check Your 2024/25 Turnover: Look at your last tax return. Was your gross income over £50k?
2. Assess Your Systems: If you are currently manual, book a Xero Setup Session with us immediately. Getting set up before April is vital.
3. Separate Your Bank Accounts: If you are a landlord mixing personal and rental income in one account, stop. Open a separate business account now to make digital linking easier.
4. Speak to Curve: We can confirm your eligibility and help manage the transition so you can focus on running your business.

Don't Wait Until April While HMRC is expected to take a proportionate approach to penalties initially, fines will eventually apply once the regime is fully bedded in. The best way to navigate MTD is to embrace it early.

If you are a Crawley business owner worried about the switch, we are here to help. We are MTD experts and Xero Gold Partners.

Book Your Free Consultation Today