Got the letter from HMRC? Here is what it means.
It means HMRC wants your business records kept in software, with a short update sent each quarter, as well as your tax return at the end of the year. Lekhio keeps the records it asks for, as you go.
Lekhio does the paperwork. You just say yes.
What the letter is about
- From 6 April 2026, for sole traders and landlords whose qualifying income was over £50,000.
- From 6 April 2027, for qualifying income over £30,000. HMRC expects around 1,077,000 more people to join then.
- Qualifying income is your self employed turnover plus your rent, before any expenses come off.
Your letter says when it starts for you. If anything in it is unclear, GOV.UK's checker goes through it for your own situation.
Three things to do now
None of them takes long, and none of them needs doing today.
Keep the letter
It says when Making Tax Digital starts for you. Put it with your tax papers, and check it against GOV.UK's checker if you want to be sure.
Keep your records digitally
From your start date, your sales and your costs are kept in software. With Lekhio that is a photo of a receipt, or a payment typed in, and it lands in your books.
Know who sends your updates
Each quarter a short update goes to HMRC. Lekhio does not send to HMRC yet. You send each update through other software that works with Making Tax Digital, or your accountant does.
What Lekhio does for you today
Keeps the records the letter asks for
Snap a receipt or type a payment in, and it goes into your books. Anything Lekhio reads for you waits for your yes before it counts.
Keeps your trade and your rent apart
Your work money and your property money sit in separate streams, the way HMRC counts them.
Prepares your quarterly figures
Lekhio prepares your Making Tax Digital figures for you to check. Lekhio does not send to HMRC yet. Your figures also come as a CSV file, for your accountant or other software to take in.
What it costs
Free Lekhio keeps your books for nothing. Free needs no card, ever. Paid Lekhio for a sole trader or a landlord is £13.99 a month, or £139 a year. 7 days free with a card. Nothing is taken for 7 days, and you can cancel in one tap.
See what Paid addsRather do it together? We ring you at a time that suits you and set Lekhio up with you, in about ten minutes. Set it up with us
Lekhio prepares your figures and you approve them, always, and you stay responsible for your tax. This page is general information, not tax advice. For your own position, use GOV.UK's checker or ask an accountant.